U.S. Senator Judd Gregg (R-NH), a member of the Senate Banking Committee and the House-Senate Committee of Conference on financial regulatory reform, today issued the following statement upon final passage of the conference report by the full Senate.
Senator Gregg stated, "After more than a year of negotiations, the Senate this afternoon narrowly approved the Majority's financial regulatory reform bill. This reform effort was supposed to address the serious flaws in our regulatory oversight of the financial system as well as the driving factors that led to the 2008 economic crisis. Sadly, however, this effort misses the mark in implementing much needed reforms and will do more harm than good to a still struggling economy by constricting credit for families and small businesses and piling on new layers of unnecessary bureaucracy. Additionally, this bill is not paid for - CBO estimates that it will add at least another $5 billion to the deficit down the road.
"Congress and the Administration have failed in their chief responsibility to ensure we do not face crisis conditions again by flatly ignoring the root causes of the 2008 crisis -- shoddy underwriting practices and the government sponsored enterprises Fannie Mae and Freddie Mac. Furthermore, this measure will not encourage stability and confidence in our financial markets. It will not significantly reduce systemic risk in our financial sector.
"In the face of continued economic uncertainty, skyrocketing budget deficits, and a mounting national debt, this measure will undoubtedly do harm to our efforts to create jobs and revive the economy."