[Congressional Record Volume 156, Number 101 (Thursday, July 1, 2010)]
[Extensions of Remarks]
[Page E1262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   CONFERENCE REPORT ON H.R. 4173, DODD-FRANK WALL STREET REFORM AND 
                        CONSUMER PROTECTION ACT

                                 ______
                                 

                               speech of

                           HON. BOB ETHERIDGE

                           of north carolina

                    in the house of representatives

                        Wednesday, June 30, 2010

  Mr. ETHERIDGE. Mr. Speaker, I rise in support of the conference 
report on H.R. 4173, the Dodd-Frank Act of 2010.
  We have already seen what happens to Main Street when Wall Street 
abuses run rampant. Over the past decade, Wall Street's protectors 
looked the other way while Wall Street fat cats gambled with our future 
and ran our economy into the ditch, and the North Carolina families I 
hear from every day paid the price. We have seen what that means for 
Main Street: 8 million jobs lost, $17 trillion in hard-earned family 
savings--savings for retirement, college, or home buying--all wiped out 
overnight. Today we have the opportunity to say, ``enough.'' We have 
had enough of the abuses, enough of risky speculation, enough of 
taxpayer-funded bailouts. It is time to put in place common sense rules 
of the road to protect Main Street and American taxpayers. This bill 
does just that. H.R. 4173 delivers a comprehensive set of financial 
regulations that increase accountability and oversight for Wall Street 
and America's financial sector.
  H.R. 4173 addresses the ``too big to fail'' syndrome, and ends 
taxpayer funded bailouts. This bill makes sure the taxpayer is not 
responsible for bailing out such firms, by establishing a process for 
dismantling failing financial institutions like AIG or Lehman Brothers. 
With this reform, these large Wall Street firms will be in charge of 
paying the cost for the risks they create instead of taxpayers paying 
the tab. 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. 
While I hope that the dissolution measures are never necessary, it just 
makes sense to have an orderly way to wind down failing institutions as 
an insurance policy. This process will punish the corporate executives 
who are to blame for a failed bank, rather than the American taxpayer.
  For years, I have called for an end to the wild west of speculation 
in derivatives markets. I am pleased that this bill includes my 
proposal to strengthen derivatives market oversight. For the first time 
ever, over-the-counter derivatives market for transactions between 
dealers and major swap participants will be required to be reported. 
This transparency means that regulators can monitor this trillion 
dollar market, and make sure that companies like AIG only make trades 
when they have enough capital to back them up. Unregulated speculation 
may well be responsible for wide swings and increases in the price of 
energy for consumers and feed for farms. 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 make sure brokers tell folks what they are buying, clearly and 
honestly. It would be devoted to stopping unfair practices and 
preventing abusive financial products from entering the marketplace. 
The CFPA would impose effective consumer protections for subprime 
mortgages, overdraft fees, credit card practices, and other financial 
products, not just at banks but wherever these products are purchased.
  This bill includes other critical provisions for oversight and 
streamlining of the financial system. It creates a Federal Insurance 
Office, reforms the credit ratings agencies that failed to 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.
  We need to take action to put the interests of average Americans 
ahead of corporate special interests. Today we have an opportunity to 
clean up the mess on Wall Street, hold wrongdoers accountable for their 
actions and stand up for taxpayers. I call on my colleagues to put Main 
Street before Wall Street, and to join me in support of the Wall Street 
Reform and Consumer Protection Act.

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