Reining In Wall Street

What's New

Draft Financial Reform Bill Proposed

Sen. Christopher Dodd (D-CT) released a draft of a comprehensive financial reform bill on Nov. 10.

Ed Mierzwinski, U.S. PIRG's 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.”

The companion House CFPA bill is ready for floor action after committee action in October. Despite a battering series of pernicious amendments, we were able to preserve the agency’s independence and the bill’s critical provision ensuring that federal law be reinstated as a floor not ceiling of protection, allowing states to do more to protect the public.

But, car dealers, who often make some of the most dangerous loans, and credit life, unemployment and disability insurance companies – whose products are virtually worthless – carved out critical exceptions from the agency’s coverage that need to be fixed. Read Ed Mierzwinski's Testimony Before the House Committee on Financial Services Regarding Financial Regulatory Reform and the CFPA.

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.