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ImageWASHINGTON, DC – Today, U.S. Rep. Michael Arcuri (NY-24) voted for tough new regulations and oversight that will prevent Wall Street and big banks from engaging in the risky behavior that led to the financial collapse.   The Wall Street Reform and Consumer Protection Act (H.R. 4173) will end “too big to fail” taxpayer-funded bailouts, protect consumers from predatory lending, safeguard investments and savings, and inject transparency and accountability into our broken financial system.

“For years, Wall Street banks have been allowed to exploit loopholes and engage in the risky behavior that led to the worst financial crisis since the Great Depression—and when the market collapse wiped out the savings of hard working families, they made record profits and rewarded themselves with big bonuses,” Arcuri said.  “Never again will Wall Street be allowed to recklessly gamble with our financial health and safety.”

Arcuri added, “This legislation puts in place common-sense regulations for those responsible for the financial meltdown—not consumers or our local community bankers—and ensures we are never again on the hook for Wall Street’s risky decisions.”

The Wall Street Reform and Consumer Protection Act contains a number of comprehensive measures which are designed to make consumer protection a federal priority and prevent a future collapse of our financial markets, including:

  • Increases Consumer Protection: Creates a new independent watchdog, Bureau of Consumer Financial Protection, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protects them from hidden fees, abusive terms, and deceptive practices. For the first time, one entity will have sole focus and responsibility for monitoring and enforcing federal consumer protection laws governing financial products;
  • Ends “Too Big to Fail” Taxpayer Bailouts:  Never again will taxpayers be asked to write a check to bail out financial firms that threaten the economy.  This is accomplished by providing a safe way to liquidate failed firms, imposing tough capital and leverage requirements to deter firms from getting to big, and disallowing the Fed from propping up individual firms.  It also establishes rigorous standards and supervision to protect the economy and American consumers, investors and businesses. Lastly, it eliminates the Troubled Asset Relief Program (TARP) as of July 1, 2010;
  • Creates an Advance Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products and activities before they threaten the stability of the economy;
  • Transparency and Accountability: Eliminates loopholes that allow risky and abusive practices to go unnoticed and unregulated, including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders;
  • Protects Investors: Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses;
  • Increases Enforcement and Oversight: More enforcement power and funding for the Securities and Exchange Commission (SEC), including requiring registration of hedge funds and private equity funds;
  • Reins in on Egregious Executive Compensation: Provides shareholders a ”say on pay” by requiring independent directors on compensation committees and limiting bank executive risky pay practices that jeopardize banks’ safety and soundness; and,
  • Protections for Small Businesses from Unreasonable Fees:  Requires the Federal Reserve to issue rules to end out-of-control swipe fees that banks and other credit and debit card issuers charge for debit or prepaid-card purchases, saving merchants billions in hard-earned revenue.

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