The economic recession was caused in large part by federal regulators who failed to guard against abuses in home loans and credit-card lending and excess risk taking with other people's money, and by corporate interests that took advantage of these lapses. No one has been hurt more than the consumer. We need real protection from abuses that can lead to economic downfall.
We must protect our financial system by
* Creating a Consumer Financial Protection Agency to establish guidelines that will prevent future reoccurrences of the banking-industry excesses that destabilized the American economy and demoralized homeowners. This new agency would act as a consumer watchdog and guardian against reckless risk-taking and deceptive practices.
* Protecting people from excessive bank overdraft fees, high credit card rates and fees, and other predatory practices by holding the government agencies responsible for overseeing these institutions accountable.
* Supporting the housing market without allowing banks and special interests to encourage risky behavior or reap exorbitant rewards.
* Imposing regulatory oversight that roots out miscalculated and misallocated risk and protects the taxpayer from bearing the brunt of other people's bad decisions.
* Requiring transparency and accountability in markets and trading of derivatives, credit default swaps, and other financial instruments.
* Re-adopting rules that separate traditional banking activities from securities trading.