[Congressional Record Volume 156, Number 98 (Monday, June 28, 2010)]
[House]
[Pages H4902-H4903]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    CONGRESSIONAL BLACK CAUCUS HOUR

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 6, 2009, the gentlewoman from Ohio (Ms. Fudge) is recognized 
for 60 minutes as the designee of the majority leader.
  (Ms. FUDGE asked and was given permission to revise and extend her 
remarks.)
  Ms. FUDGE. I appreciate the opportunity to anchor this Special Order 
hour on Wall Street reform for the Congressional Black Caucus. 
Currently, the Congressional Black Caucus, the CBC, is chaired by the 
Honorable Barbara Lee from the Ninth Congressional District of 
California.
  Mr. Speaker, I now yield to our chair, the Honorable Barbara Lee.
  Ms. LEE of California. Thank you very much. Thank you, Mr. Speaker. 
Let me thank Congresswoman Fudge for once again being on the mark in 
terms of the Special Order tonight. She has taken the leadership on 
behalf of the Congressional Black Caucus to really bring the message of 
the Congressional Black Caucus to the country. Tonight, Congresswoman 
Fudge will be talking about the urgent need to enact regulatory reform 
of America's financial markets.
  So thank you for your leadership. I know your district is going to 
benefit tremendously from this. Oftentimes we forget that regulatory 
reform also has a direct impact on the huge foreclosure crisis that I 
know your district is facing. So thank you again for your leadership.
  Let me just thank, first of all, all Members who were on that 
Financial Services Committee for such a major effort to take this 
important step in protecting Americans from another financial crisis. 
While many provisions in the bill could be much stronger, I believe 
that H.R. 4713 is a critical step forward in bringing some reasonable 
regulations and oversight back to an out of control financial services 
sector.
  I actually was on the Banking Committee during much of the 
deregulation process and could not support it then. And unfortunately, 
what those of us on the committee saw happening and said would happen 
has happened. But now this important legislation will finally make our 
banks and financial services institutions much more transparent, put 
consumer rights before corporate profits, and allow shareholders more 
of a say on skyrocketing CEO pay packages.
  While I would have preferred a stand-alone Consumer Financial 
Protection Agency, this bill will create an independent agency that 
remains independent and puts consumers first. I am pleased that more 
transparency on CEO pay is included in these reforms. While I might 
have preferred some reasonable constraints, like my bill that would 
limit tax deductibility of executive pay, allowing shareholders to have 
a say on pay is a good step forward.
  I remain concerned that rules on risky derivatives trading, limits on 
proprietary trading by our biggest banks, and controls over the 
operations of ratings agencies may not be strong enough to prevent 
continued risk to our markets and taxpayers. I had hoped that more 
could be done to ensure that banks pay for their failures. But I know 
that we must pass these reforms and we must pass them now.
  So I hope that my colleagues across the aisle will join us in the 
effort to protect consumers, shareholders, and the open and honest 
functioning of the financial markets that are so critical to our 
continued prosperity. I hope that we have all come to understand how 
ridiculous it is to claim that the markets can regulate themselves, and 
that we can agree that the government has a critical role in ensuring 
that our financial services sector functions fairly, with transparency, 
and allows equal opportunity for all Americans.
  I look forward to working with the regulators as they begin to 
implement these new protections for investors and consumers. I hope 
that we can work together to make sure that we are never again, never 
again held hostage to out of control greed on Wall Street and 
regulators who really were asleep at the switch.
  Thank you again. Thank you, Congresswoman Fudge, for your leadership.

                              {time}  1915

  Ms. FUDGE. Mr. Speaker, I just want to continue to express my support 
for our Chair. She is very strong and courageous and keeps us on task. 
I just appreciate her hard work and her leadership, not only for the 
Congressional Black Caucus but for our caucus in general. Thank you 
very much, Madam Chair.
  Mr. Speaker, tonight we will focus on the need for this Wall Street 
reform that Americans have been waiting for. Americans have faced the 
worst financial crisis since the Great Depression. Millions have lost 
their jobs, businesses have failed, housing prices have dropped, and 
savings have been wiped out. A year and a half after the country's 
banking system nearly imploded, it is still operating under the same 
inadequate rules and regulations. The failures that led to this crisis 
require bold action. We must restore responsibility and accountability 
in our financial system to give Americans confidence and the 
protections they need. We must create a sound foundation to grow the 
economy and to create jobs. This is in fact why Congress is set to vote 
this week on the Wall Street Reform and Consumer Protection Act. 
Despite vigorous lobbying from the banks, this bill protects the 
American people and the financial system from abuses that nearly caused 
the entire system to collapse. This bill contains commonsense reforms 
that hold Wall Street and the big banks accountable.
  It will end bailouts by ensuring that taxpayers are never again on 
the hook for Wall Street's risky decisions. It will protect families' 
retirement funds, college savings, homes and businesses' financial 
futures from unnecessary risk

[[Page H4903]]

by CEOs, lenders and speculators. It will protect consumers from 
predatory lending abuses, from the fine print and industry gimmicks. 
And it will inject transparency and accountability into a financial 
system that has run amok.
  Wall Street reform is good for our country because it is a critical 
step to create jobs and grow the economy. Years without accountability 
from Wall Street and the big banks have cost us 8 million jobs. Having 
a healthy financial system will help spur lending to businesses, of 
course, which will grow our economy. As we rebuild our economy, the new 
commonsense rules from this bill will ensure that big banks and Wall 
Street can't play games again with our futures.
  Americans want fairness, Mr. Speaker. They deal openly and honestly 
with their banks, and they want their banks to treat them like the good 
customers that they are.
  There was a meltdown. For 8 years, Mr. Speaker, under the previous 
administration, our allies on the other side of the aisle looked the 
other way as Wall Street and the big banks exploited loopholes. 
Americans had no clue that Wall Street barons were gambling away their 
money on complex schemes and being handsomely rewarded for failure and 
for recklessness. America's families and small businesses paid the 
price. We lost 8 million jobs and $17 trillion in retirement savings 
and Americans' net worth in this meltdown. It was the worst financial 
crisis since the Great Depression.
  There are tough choices. This Congress and our President, President 
Obama, have made tough choices and taken effective steps to bring our 
economy back from the brink of disaster. The Recovery Act has already 
saved or created up to 2.8 million jobs and much of the TARP has 
already been repaid. But more must be done.
  The next step is the Wall Street reform. It is a critical step to 
create jobs and grow the economy. As we rebuild our economy, we must 
establish commonsense rules to ensure big banks and Wall Street can't 
play Russian roulette again with our futures. Wall Street may be 
bouncing back, but we know from experience they are not going to police 
themselves.
  Let me just talk a bit about what is in this legislation. This bill 
protects hardworking Americans from the worst abuses in the financial 
industry. I'd like to share with you just some of the consumer 
protections that are included in this bill: There is protection for 
families and small businesses by ensuring that bank loans, mortgages, 
and credit card terms and disclosures are fair and understandable. 
Transparency in the industry will be overseen by the new Consumer 
Financial Protection Agency. Credit card companies will no longer be 
able to mislead you with pages and pages of fine print. You will no 
longer be subject to hidden fees and penalties, or the predatory 
practices of unscrupulous lenders. This bill will make lending 
agreements easier to understand and protect small borrowers.
  It ends predatory lending practices that occurred during the subprime 
lending frenzy that this country experienced. The legislation outlaws 
many of the egregious industry practices that led to the subprime 
lending boom. It ensures that mortgage lenders make loans that benefit 
the consumer. It would establish a simple standard for all home loans: 
institutions must review proof of income to ensure that borrowers can 
repay the loans they are sold. This legislation will force mortgage 
companies to play by the rules. You'll be empowered with easy-to-
understand forms. And you'll have clear and concise information to make 
financial decisions that are best for you and your family.
  Financial firms will no longer be able to engage in behavior that is 
so risky and irresponsible that it threatens to bring down the entire 
economy. This bill replaces taxpayer bailouts with new procedures to 
unwind failing companies that pose the greatest risk. This wind-down 
process will be paid for by the financial industry and not by 
taxpayers.
  It produces tough new rules on the riskiest financial practices that 
gambled with your money and caused the financial crash, like the credit 
default swaps that devastated AIG, and commonsense regulation of 
derivatives and other complex financial products offered to consumers.
  It provides tough enforcement and oversight with more enforcement 
power and funding for the Securities and Exchange Commission, including 
the registration of hedge funds and private equity funds. It provides 
enhanced oversight and transparency for credit rating agencies whose 
seal of approval gave way to excessively risky practices that led to a 
financial collapse.

  It protects investors. It strengthens the SEC's power so it can 
better protect investors and regulate the Nation's securities markets. 
Reining in egregious executive compensation, allowing a ``say on pay'' 
for shareholders, requiring independent directors on compensation 
committees, and limiting bank executive risky pay practices that 
jeopardize the safety and soundness of banks.
  As a member of the CBC, one important part of the bill I would like 
to highlight is the new Offices of Minority and Women Inclusion. At 
Federal banking and securities regulatory agencies, the bill 
establishes an Office of Minority and Women Inclusion that will, among 
other things, address employment and diversity contracting 
opportunities with the Federal Government. The offices will coordinate 
technical assistance to minority-owned and women-owned businesses and 
seek diversity in the regulatory workforce. By actively engaging 
minorities and women, the Nation's financial system will become 
stronger.
  Mr. Speaker, nearly 2 years after our Nation's financial system stood 
on the verge of collapse, Congress is working hard to protect American 
consumers and to grow our economy. The Wall Street Reform and Consumer 
Protection Act will accomplish both goals. This sweeping new 
legislation will modernize America's financial rules in response to the 
worst economic crisis since the Great Depression. Once signed into law, 
these tough new regulations will hold Wall Street accountable, it will 
end taxpayer-funded bailouts, and protect Americans from unscrupulous 
big banks and credit card companies. Wall Street reform is a win for 
the American people. This is about making the system fair and 
accountable. The financial crisis that unfolded in 2008 should never 
have happened. But since it did, this Congress has been working hard to 
develop legislation that will prevent a future crisis.
  I support the Wall Street Reform and Consumer Protection Act because 
it includes commonsense reforms that hold Wall Street and the big banks 
accountable. But most of all, Mr. Speaker, this bill supports the 
American people. Let's give Americans what they deserve--fairness in 
the financial system.

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