[Congressional Record (Bound Edition), Volume 156 (2010), Part 8]
[House]
[Pages 11813-11816]
[From the U.S. 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.


                             general leave

  Ms. FUDGE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks on the 
subject of my Special Order.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Ohio?
  There was no objection.
  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

[[Page 11814]]

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 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

[[Page 11815]]

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.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, let me begin my 
thanking my friend and colleague, the gentlewoman from Ohio, 
Congresswoman Fudge, for anchoring once again tonight's Congressional 
Black Caucus' special hour.
  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 funding repaid. Now we are taking another key step 
forward with a final agreement on the Dodd-Frank Wall Street Reform and 
Consumer Protection Act.
  For many months now, members of the Congressional Black Caucus 
continue to be laser focused on financial reform. We have sought to 
engage the Obama administration, House and Senate leadership, committee 
chairs, and our coalition partners to develop a legislative strategy 
aimed at addressing the needs of millions of Americans who are 
struggling in this tough, economic environment.
  Mr. Speaker, we must reform Wall Street to end risky practices that 
have caused millions of Americans to lose their jobs, their homes, and 
life savings. The House passed a financial reform bill that will 
protect consumers and prevent the irresponsible behavior that caused 
the financial melt down.
  I was proud to join a majority of my colleagues in this body in 
supporting passage of Wall Street. We are committed to protect American 
families and their savings.
  We ended the practice of ``too big to fail.'' We established 
safeguards to ensure that the abuses of the past are never again 
repeated. Mr. Speaker, the House made Wall Street reform a priority.
  Every day of delay is one more opportunity for a recurrence of 
economic uncertainty and even collapse. Last Thursday's roller coaster 
on the stock market was a clear reminder that we cannot allow a willful 
lack of responsible oversight to expose American families, American 
business, and our whole economy to such potential risk.
  Mr. Speaker, Members of Congressional Black Caucus continue to 
support the efforts to reform Wall Street.
  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.

[[Page 11816]]

  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 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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