[Congressional Record Volume 155, Number 186 (Friday, December 11, 2009)]
[Extensions of Remarks]
[Page E2984]
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. JOHN GARAMENDI

                             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. GARAMENDI. Madam Chair, I rise today in strong support of this 
bill.
  Listening to this debate, it amazes me how short the memories are of 
some of my colleagues on the other side of the aisle. Our financial 
sector collapsed and millions of Americans lost their jobs and their 
savings because Wall Street knew it could get away with just about 
anything under the previous administration.
  Today, with this vote, I'm proud to say no more. No more to abusive 
lending practices, no more to loopholes that allow billions of dollars 
between large firms to go unregulated, no more to a system that 
prioritizes short term profit in one sector over the long term health 
of an entire economy.
  Under this legislation, consumers will finally have a Federal 
regulator with teeth ready to battle predatory financial firms. We will 
stop financial conglomerates from becoming `too big to fail' and 
provide legal and financial assistance to homeowners and renters trying 
to save their homes. For the first time in U.S. history, we will 
regulate the over-the-counter derivatives marketplace, where millions 
of contracts between large banks have gone unregulated for years. We 
are also requiring most private equity and hedge fund advisors to 
register with the Securities and Exchange Commission and expanding the 
SEC's staff and antifraud capabilities. We also require full disclosure 
of financial firms' compensation structures and give shareholders the 
opportunity to give an advisory vote on executive compensation 
practices. With millions of Americans unemployed, including tens of 
thousands in my district, we can't afford further delay on this 
important package.
  For 8 years as California's Insurance Commissioner, I regulated the 
largest financial industry in America: the insurance companies. The 
insurance companies had one commandment: thou shalt pay as little as 
possible as late as possible. Many in finance have their own 
commandment: thou shalt build up thy house of cards as fast as possible 
as profitably as possible without consideration of the long term 
consequences. The games have to stop; it's time we created an economy 
that focuses on the needs of Main Street, not just Wall Street.