Rep. Tonko Supports New Protections For Consumers

U.S. Rep. Paul Tonko voted today in favor of protecting consumers from predatory lending practices and for ending the risky practices that collapsed the financial system, in the largest reform of our nation's financial regulations since the New Deal. The House today passed H.R. 4173, The Wall Street Reform and Consumer Protection Act, by a vote of 223-202.

"If it weren't for the collapse of the financial sector and the loss of trillions of dollars a little over a year ago, we would not have to take up this measure today," said Rep. Tonko. "However, the fact of the matter is that this did happen, and President Obama and Congress are now attempting to clean up the mess. We must make sure that a collapse on this order of magnitude never happens again. This bill will help us clean up Wall Street while simultaneously improving the efficiency and the effectiveness of the federal government's regulation of the financial markets."

The Wall Street Reform and Consumer Protection Act will create a new Consumer Financial Protection Agency to protect families and small businesses by ensuring bank loans, mortgages, and credit cards are fair, affordable, and understandable. For the first time, the new agency streamlines into one place the role of protecting ordinary Americans' financial security.

The legislation also provides for the following protections for consumers:

* Ends predatory lending practices that occurred during the subprime lending frenzy.
* Ends "Too big to fail" financial firms before risky and irresponsible behavior threatens to bring down the entire economy.
* Prevents costly taxpayer bailouts with new procedures to unwind failing companies that pose the greatest risk -- paid for by the financial industry, not taxpayers.
* Creates tough new rules on the riskiest financial practices, and common sense regulation of derivatives and other complex financial products offered to consumers.
* Tougher enforcement and oversight through the Securities and Exchange Commission.
* Enhanced oversight and transparency for credit rating agencies, whose seal of approval gave way to excessively risky practices that led to a financial collapse.
* Addresses egregious executive compensation by allowing shareholder a "say on pay,' requiring independent directors on compensation committees, and limiting bank executive risky pay practices that jeopardize banks' safety and soundness..

Congressman Tonko added: "From hedge funds to Wall Street investment banks and the mortgage industry, we need to be sure to strengthen regulation through a streamlined process. This bill does that. The days of taxpayer funded bailouts are over. We must continue to instill these measures so that we protect our local families and small businesses and create solutions to one of our nation's most important problems."

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