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ISSUES

Reining In Wall Street

 

What's New

The House is considering its financial reform package this December, called the Wall Street Reform and Consumer Protection Act.

Ed Mierzwinski, Maryland PIRG's Federal Consumer Program Director, said the bill is "a major step" and includes a strong Consumer Financial Protection Agency.

However, Mierzwinski warned, "despite the collapse of our economy due to a financial regulatory system that failed," the bill still faces "a gauntlet of special-interest lobbyists looking for exceptions and loopholes."

"We oppose all weakening amendments to the CFPA and other Wall Street reforms. The worst CFPA proposal is an anticipated amendment to preempt the states from taking stronger actions, thereby eliminating the bill's provision reinstating federal law as a floor not ceiling of protection. An amendment to eliminate the CFPA's authority to ban forced arbitration in consumer contracts is also expected."

On the positive side, the Wall Street reforms include a PIRG-backed provision to audit the Federal Reserve Board.

Provisions concerning coverage of the shadow markets, including derivatives and credit default swaps, have been improved but still are not perfect. The bill takes positive steps to eliminate institutions that are too big to fail and to protect investors, although both areas should be improved in the final law.

For more details, read Mierzwinski's In The Public Interest blog on the Huffington Post, written Dec. 7.

Action in the Senate Banking Committee on the companion Senate reform bill has been delayed.

From now through the end of the year, U.S. PIRG and its allies at Americans For Financial Reform will be building support for the CFPA and other parts of the reforms being proposed by Barack Obama's administration.



How You Can Help

Send a Message to Your Member of Congress

Urge your Representative and Senators to co-sponsor legislation to establish a Consumer Financial Protection Agency.



Overview

For too long, the rules of Wall Street have been written by the bankers themselves. The result? Our economy collapsed. This year, that has to change.


Our economy collapsed because of a lack of strong consumer protections. That's why reform must include establishment of a strong, independent consumer financial product agency with the will and the authority to protect consumers from dangerous, deceptive financial practices.

We also need broad reforms to guarantee that regulators do their safety and soundness job, that systemic risk is reduced and all the players are covered.

Now that we know that a few investment firms can undermine the larger economy, we must take steps to protect taxpayers and consumers.

• We need to rein in the excesses of Wall Street. No more hidden accounting practices or demanding that we invest our retirement savings blindly. 

• We need to protect consumers and our economic future with new rules to put a check on irresponsible banking practices and we need to make sure those rules are enforced.

• We need independent enforcement.

No more cozy relationships between regulators and the regulated.



 
MARYLAND PUBLIC INTEREST RESEARCH GROUP
Maryland PIRG: 3121 St. Paul St., Suite 26, Baltimore, MD 21218