Kennedy Joins House in Passing Wall Street Reform and Consumer Protection Act

Press Release

Today, Congressman Patrick J. Kennedy (D-RI) joined the House of Representatives in passing the conference report for the Wall Street Reform and Consumer Protection Act. This package of common sense reforms will hold Wall Street and Big Banks accountable for their role in the current economic crisis and protect consumers from predatory lending abuses.

"In the fall of 2008, years of President Bush and Congressional Republicans abdicating their duty to provide oversight of Wall Street and Big Banks came to its natural conclusion. Whether it was negligence or tacit encouragement, the reckless behavior exhibited by Wall Street brought on a near total collapse of our financial system," said Kennedy. "Today, those individuals responsible for this crisis are reaping the benefits of our intervention with exorbitant profits and bonuses. Meanwhile, 's working families continue to pay the price -- millions of jobs lost and retirement savings erased."

"While Congressional Democrats and the Obama administration have recovered the majority of TARP funds, we still need to put in place the common sense reforms that will prevent Wall Street and Big Banks from ever playing Russian roulette with the American people's money again."

This legislation puts a cop on the beat on Wall Street because they have proven that they are either unable or unwilling to police themselves. It ends the Bush-era days of costly bailouts by shutting down "too big to fail" financial firms before their irresponsible behavior threatens to bring down the entire economy. It also creates a mechanism to deconstruct failing companies that pose a risk -- paid for by the financial industry rather than taxpayers.

The legislation also puts new rules on the riskiest financial practices, bringing regulation and transparency to derivatives, credit default swaps, and other complex financial products.

Finally, it creates the Consumer Financial Protection Bureau. This independent watchdog will ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and student loans. It will also have the authority to protect American consumers from hidden fees, abusive terms, unfair terms, and deceptive practices.

Added Kennedy, "I am pleased that the House, on behalf of the American people, was able to overcome those who hold a significant vested interest in maintaining the status quo. It is my hope that the Senate will follow suit."

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