Carson Hails Historic Wall Street Reform Law

July 21, 2010

Carson Hails Historic Wall Street Reform Law

WASHINGTON, D.C. - Finally shifting the balance of power back to consumers and away from the past destructive practices of the financial industry, Congressman André Carson today hailed the President's signing of Wall Street reform legislation.

The Dodd-Frank Wall Street Reform and Consumer Protection Act will create the Consumer Financial Protection Bureau (CFPB), a new consumer watchdog housed in the Federal Reserve devoted to protecting Americans from unfair and abusive financial practices. This independent bureau will provide clear and accurate information to families and small businesses to ensure that bank loans, mortgages and credit cards are fair and affordable.

"Today is an historic day for Americans on Main Street," said Congressman Carson who worked on the legislation as a member of the House Financial Services Committee. "This law sets safety standards to prevent practices such as hidden credit card fees, deceptive "fine print," and other financial abuses that have escaped oversight thus far."

The new law ends taxpayer-funded bailouts and ‘too big to fail' financial institutions and creates a process to shut down large, failing firms in the event that their collapse would put the entire economy at risk. After exhausting all of the company's assets, additional costs would be covered by a "dissolution fund," to which all large financial firms will contribute - not taxpayers.

"For too long the previous administration failed to monitor the financial industry, looking the other way as average Americans lost their jobs and retirement savings as a result of Wall Street's recklessness and greed," said Congressman Carson. "This law addresses the countless causes - from predatory lending to unregulated derivatives - that led to the meltdown."

More information about the Dodd-Frank Wall Street Reform and Consumer Protection Act

Ends Wall Street Bailouts

The Wall Street reform legislation ends the possibility that taxpayers will bail out financial firms that threaten the economy.

The new law creates a safe way to liquidate failed financial firms, and it imposes tough new capital requirements.

It also gives the Federal Reserve new authority to keep our economy stable while establishing rigorous standards to protect American consumers, investors and businesses.

Consumer Protections Ramp Up

It creates a new independent watchdog, housed in the Federal Reserve,

It will have the authority to ensure that American consumers get the clear, accurate information they need to shop for mortgages, credit cards and other financial products.

The new consumer protection bureau will protect Americans from hidden fees, abusive loan terms and deceptive practices.

Protects Families' Retirement Funds and College Savings

The reform law eliminates loopholes that led to risky practices by financial firms

It provides tough new rules for transparency and accountability that will protect investors, retiree pensions and business investments.

Cracks Down on Abusive Mortgages

It establishes broad protections against abusive mortgages.

Lenders will have to evaluate borrowers' ability to repay loans, and it bans almost all prepayment penalties, which lock borrowers into high-cost loans.

The bill also eliminates the incentives to steer borrowers into loans they can't afford, and it limits total fees to no more than five percent for almost all loans.

Lastly, Wall Street reform bans mandatory arbitration clauses in mortgages.

Creates an Advanced Warning System

The law creates a council to identify and address the risks posed by large, complex companies, products and activities before they threaten the stability of the entire economy.

This will help prevent our financial system from ever again reaching the point of near-collapse.

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Carson Hails Historic Wall Street Reform Law