Today, Congressman Brad Sherman (D-CA), a senior member of the House Financial Services Committee, applauded President Obama for signing the Wall Street Reform and Consumer Protection Act (HR 4173) into law. The new law contains a set of historic reforms to protect the economy of our country and the financial security of Americans.
"The new law includes several key provisions on which I labored tirelessly. I am particularly pleased that I was able to remove other provisions that would have created TARP on steroids. Not only does this bill end TARP, it closes the door on future bailouts. Not only will consumers be protected from deceptive and risky financial schemes, Wall Street will be on the hook to clean up its own messes, not the taxpayer," said Congressman Sherman.
Congressman Sherman, who led the effort to oppose TARP, the bailout for big Wall Street banks adopted in late 2008, also led a successful, bipartisan effort to remove provisions that would have given the Treasury Department permanent, unlimited authority to bail out Wall Street giants using taxpayer dollars. The new law also ends TARP immediately, thus returning $225 Billion to the Treasury, which could otherwise fund additional Wall Street bailouts.
Sherman, a CPA, also worked with his colleagues on the Financial Services Committee to ensure that the Wall Street Reform and Consumer Protection Act contained the strongest consumer protections, creating a new, powerful watchdog called the Bureau of Consumer Financial Protection, which will ensure that the products and services sold by Wall Street to consumers are fair and marketed honestly.
Sherman has long argued that perhaps the single greatest cause of the financial meltdown was the practice of the credit rating agencies of giving their best ratings to bonds backed by questionable mortgages. He worked with U.S. Senator Al Franken (D-MN) to successfully amend the Wall Street Reform and Consumer Protection Act to end conflicts of interest in the selection of rating agencies by bond issuers.