[Congressional Record Volume 156, Number 100 (Wednesday, June 30, 2010)]
[Extensions of Remarks]
[Pages E1237-E1238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    CONGRESSIONAL BLACK CAUCUS HOUR

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                         Monday, June 28, 2010

  Ms. JACKSON LEE of Texas. Mr. Speaker, I rise to speak about the 
special order topic of financial reform. I would like to thank my 
colleague Congresswoman Marcia Fudge for bringing this issue to the 
floor tonight. I would also like to thank CBC Chair Barbara Lee for her 
leadership on continuing to shine the light on important issues that 
matter to the CBC and our constituents as well as the Nation as a 
whole.
  It is past time that we take strong action to reform our financial 
system to ensure that we have strong measures in place to best prevent 
the economic crisis that we have been experiencing over the last few 
years. We had years without accountability for Wall Street and the Big 
Banks under President Bush and congressional Republicans which cost the 
people of this Nation 8 million jobs.
  We will: Rein in Big Banks and their Big Bonuses, put an end to 
bailouts and the idea of ``too big to fail,'' and create a consumer 
financial protection agency to protect and empower consumers to make 
the best decisions on homes, credit cards, and their own financial 
future.
  Mr. Speaker, we can no longer afford to let the fox watch the 
henhouse. For eight years, President Bush and congressional Republicans 
looked the other way as Wall Street and the Big Banks exploited 
loopholes, gambled your money on complex schemes, and rewarded failure 
and 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.
  This Congress and 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 been paid back. And now we are taking another 
key step forward with a final agreement on the Dodd-Frank Wall Street 
Reform and Consumer Protection Act.
  As we rebuild our economy, we must put in place 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're not going to police themselves.
  Common-sense reforms that hold Wall Street and the Big Banks 
accountable will:
  End bailouts by ensuring taxpayers are never again on the hook for 
Wall Street's risky decisions
  Protect families' retirement funds, college savings, homes and 
businesses' financial futures from unnecessary risk by CEOs, lenders, 
and speculators
  Protect consumers from predatory lending abuses, fine print, and 
industry gimmicks
  Inject transparency and accountability into a financial system run 
amok


                       WHAT'S IN THE LEGISLATION?

  Creating a new Consumer Financial Protection Agency to protect 
families and small businesses by ensuring that bank loans, mortgages, 
and credit cards are fair, affordable, understandable, and transparent. 
We currently have rules that keep companies from selling us toasters 
that burn down our homes. We should have similar rules that bar the 
financial industry from offering mortgage loans to people who can't 
afford repayment.
  Ending predatory lending practices that occurred during the subprime 
lending frenzy.
  Shutting down ``too big to fail'' financial firms before risky and 
irresponsible behavior threatens to bring down the entire economy.
  Ending costly taxpayer bailouts with new procedures to unwind failing 
companies that pose the greatest risk--paid for by the financial 
industry and not the taxpayers.
  Tough new rules on the riskiest financial practices that gambled with 
your money

[[Page E1238]]

and caused the financial crash, like the credit default swaps that 
devastated AIG, and common sense regulation of derivatives and other 
complex financial products. Includes a strong ``Volcker rule'' that 
generally restricts large financial firms with commercial banking 
operations from trading in speculative investments.
  Tough enforcement and oversight with:
  More enforcement power and funding for the Securities and Exchange 
Commission, including requiring registration of hedge funds and private 
equity funds
  Enhanced oversight and transparency for credit rating agencies, whose 
seal of approval gave way to excessively risky practices that led to a 
financial collapse
  Reining in egregious executive compensation and retirement plans by 
allowing a `say on pay' for shareholders, requiring independent 
directors on compensation committees, and limiting bank executive risky 
pay practices that jeopardize banks' safety and soundness.
  New protections for grocers, retailers and other small businesses 
facing out-of-control swipe fees that banks and other credit and debit 
card issuers charge these businesses for debit or prepaid-card 
purchases. As a result, merchants stand to save billions.
  Audits the Federal Reserve's emergency lending programs from the 
financial crisis and limits the Fed's emergency lending authority.

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