[Congressional Record Volume 155, Number 186 (Friday, December 11, 2009)]
[Extensions of Remarks]
[Page E2972]
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. BOB ETHERIDGE

                           of north carolina

                    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 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. ETHERIDGE. Madam Chair, I rise in support of H.R. 4173, the Wall 
Street Reform and Consumer Protection Act of 2009.
  The chaos that began last year on Wall Street has cost the country 
billions of dollars, rippled throughout the economy, and threatened to 
topple our entire financial system. Strong measures are required to 
address such a breakdown, and H.R. 4173 delivers a comprehensive set of 
financial regulations that increase accountability and oversight for 
Wall Street and much of America's financial sector.
  Earlier this year we saw the widespread damage that can occur when 
institutions like AIG or Lehman Brothers fail. This bill makes sure the 
taxpayer is not responsible for bailing out such firms, by establishing 
a process for dismantling failing financial institutions. By creating a 
new Systemic Dissolution Fund, large Wall Street firms will be in 
charge of paying the cost for risks they create instead of taxpayers. 
In addition, a Financial Stability Council will be created to identify 
and regulate financial institutions that are so large or interconnected 
that they pose a system risk to the economy as a whole. We must avoid 
the problems posed by firms that are ``too big to fail'' in the future.
  For years, I have argued that the wild west of speculation in 
derivatives markets must end. Unregulated speculation may be 
responsible for wide swings and increases in the price of energy for 
consumers and feed for farms. This bill would strengthen derivatives 
market oversight, and for the first time ever, regulate the over-the-
counter derivatives market for transactions between dealers and major 
swap participants. This provision will help prevent entities from 
driving up the cost of commodities and products and manufacturing risk 
in the larger economy.
  H.R. 4173 also takes a major step forward in consumer protection by 
creating the Consumer Financial Protection Agency (CFPA). This agency 
would be devoted to stopping unfair practices and preventing abusive 
financial products from entering the marketplace. The CFPA would cover 
a wide range of financial institutions, including non-bank financial 
institutions, and would impose effective consumer protections for 
subprime mortgages, overdraft fees, credit card practices, and other 
financial products.
  This bill includes other critical provisions for oversight and 
streamlining of the financial system like creating a Federal Insurance 
Office, reforming the credit ratings agencies that assess the value of 
the many financial products in our economy, and cleans up abusive 
practices in the mortgage lending industry that contributed to the 
collapse of the housing market. This regulation is long overdue and 
will benefit all Americans and businesses that depend on our financial 
institutions.
  I support this reform of our financial industry, and I urge my 
colleagues to join me in voting for its passage.

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