House Passes Bill To Protect Consumers, Reform Financial Regulation

Press Release

Congressman Dennis Moore (Third District -- Kansas) announced today the passage of H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009, the most sweeping and necessary reform of our nation's financial regulatory system since the Great Depression. This new measure, if enacted into law, would establish a new Consumer Financial Protection Agency (CFPA), strengthen investor protections to prevent Bernie Madoff-type Ponzi schemes, and increase consumer protections so that innocent Americans are no longer taken advantage of by terms of agreement they don't understand or can't afford. H.R. 4713 passed the House of Representatives by a vote of 223-202.

"Last year, due to years of little oversight of our financial system, credit was overextended and financial firms were overleveraged to a point that was unsustainable," Congressman Moore said. "H.R. 4713 will guarantee we have new, tough rules for Wall Street to play by and will fully protect consumers, investors and U.S. taxpayers."

H.R. 4173, the result of over fifty hours of Financial Services Committee debate, was agreed to with over 50 Republican amendments, including twenty bipartisan amendments. Moore, who is the Chairman of the Financial Services Subcommittee on Oversight and Investigation, was a key member of the negotiations in creating a final regulatory reform package for consideration, sponsoring a number of amendments in Committee and on the House floor.

The Wall Street Reform and Consumer Protection Act will prevent the creation of 'too big to fail' financial firms before risky and irresponsible behavior threatens to bring down the entire economy. It also strengthens government oversight over large banks and financial firms -- including new regulation of credit rating agencies and riskier hedge funds, derivatives, and other complex financial deals.

The bill includes stronger enforcement and oversight of existing protections. It gives the Securities and Exchange Commission new enforcement powers, including requiring hedge funds and private equity funds to register. It enhances oversight and transparency of the credit rating agencies whose seal of approval gave way to many of the excessively risky practices that led to a financial collapse. It addresses egregious executive compensation, allowing shareholders to have a "say on pay,' requiring independent directors on compensation committees, and limiting the risky pay practices of bank executives that jeopardized banks' soundness.

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