[Congressional Record Volume 155, Number 186 (Friday, December 11, 2009)]
[Extensions of Remarks]
[Page E2974]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2008

                                 ______
                                 

                               speech of

                        HON. FORTNEY PETE STARK

                             of california

                    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. STARK. Madam Chair, I rise to support the Wall Street Reform and 
Consumer Protection Act because it is time that the Wild West of 
financial ``innovation'' had a sheriff.
  Just over a year ago, I stood on this floor and twice voted against 
President Bush's taxpayer-funded bailout of Wall Street. I would cast 
the same votes again. I hope that this legislation will mean that 
taxpayers will never again be on the hook for the reckless behavior of 
financiers.
  This legislation will help to end ``too big to fail'' by providing 
dissolution authority to regulators. Instead of being bailed out with 
tax dollars, a company like AIG would be dismantled in an orderly and 
fair process. Shareholders would be wiped out and executives dismissed. 
This would be paid for, not with tax dollars, but by an assessment on 
financial firms. The ideal solution would be the reinstatement of the 
Glass-Steagall Act, preventing the merger of commercial and investment 
banks. However, I am glad that this bill at least enables swift 
intervention and provides a financing mechanism so that bailouts will 
be a thing of the past.
  In addition to being forced to pay for the excesses of Wall Street, 
consumers have been preyed upon by financial services companies. These 
companies have profited from unfair and abusive lending practices, 
including steering families into subprime mortgages. Regulation has 
been lax or non-existent and there is no single entity charged with 
looking out for consumers. With the formation of a Consumer Financial 
Protection Agency an agency will, for the first time, be charged with 
ensuring that families are not exposed to toxic financial offerings.
  Finally, I wholeheartedly support the so-called ``cram down'' 
amendment, to allow courts to reset the principal for home mortgages in 
bankruptcy proceedings. This judicial discretion is allowed for every 
other type of debt--a reminder of the double standard that has too 
frequently separated average families from Wall Street.
  I urge all of my colleagues to put consumer interests over those of 
the Big Banks. Let's finally start policing Wall Street. Vote ``yes.''

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