[Congressional Record Volume 155, Number 186 (Friday, December 11, 2009)]
[Extensions of Remarks]
[Page E2970]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2009

                                 ______
                                 

                               speech of

                         HON. CHARLIE MELANCON

                              of louisiana

                    in the house of representatives

                      Wednesday, December 9, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration of the bill (H.R. 4173) to 
     provide for financial regulatory reform, to protect consumers 
     and investors, to enhance Federal understanding of insurance 
     issues, to regulate the over-the-counter derivatives markets, 
     and for other purposes:

  Mr. MELANCON. Madam Chair, I rise today on behalf of thousands of 
families in Louisiana and across the nation who have been devastated by 
the fraud of Allen Stanford and his financial companies.
  Earlier this year, men and women who had played by the rules and 
worked hard to prepare for retirement and their children's futures 
learned that they had been cheated out of a lifetime of savings.
  While we continue in our efforts to make these families whole, we 
have a responsibility to ensure that this kind of fraud never again 
happens in the United States. The investor protections included in H.R. 
4173, the Wall Street Reform and Consumer Protection Act are a 
monumental step toward this goal.
  One thing we have learned through this tragedy is that the greed of 
criminals like Stanford is matched only by the danger of deregulation. 
The Securities and Exchange Commission, which was designed to prevent 
this very situation, is deeply flawed. The bill we are now considering 
reforms the agency and strengthens its authority to effectively and 
forcefully protect investors and our securities markets.
  In addition, the bill creates incentives for whistleblowers to expose 
crooks like Stanford. Through a new whistleblower bounty program, we 
will reward individuals who provide tips that lead to the prosecution 
of fraud.
  Finally, under this bill, every financial intermediary who provides 
advice to an investor will have a fiduciary duty toward them. This 
standard will force broker-dealers and investment advisers to put 
first, their customers' interests--not their own pocketbooks.
  American citizens need the confidence that their government will act 
quickly and forcefully to protect their hard-earned savings. The 
investor protection measures in the Wall Street Reform and Consumer 
Protection Act will provide families the security they need to prepare 
for the future.

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