Congresswoman Shelley Berkley today praised enactment of a new financial reform law that will prevent reckless Wall Street practices and protect the savings and investments of consumers in Nevada and nationwide. President Obama signed The Wall Street Reform and Consumer Protection Act (H.R. 4173) into law this morning.
"This tough new law will help to ensure that Wall Street and the large financial institutions can never again rob Americans of their savings and investments through reckless and irresponsible practices driven by greed," said Berkley, who voted repeatedly in the House for Wall Street reform.
The new law creates the Consumer Financial Protection Bureau (CFPB) -- a consumer watchdog devoted to protecting Americans from unfair and abusive financial practices. The CFPB will set safety standards to prevent hidden credit card fees, deceptive "fine print," and other financial abuses that have escaped oversight until now.
"The creation of a new consumer protection agency, coupled with other vital reforms, will hold Wall Street and the big banks accountable, end future bailouts and create true transparency for investors and borrowers," said Berkley. "This independent watchdog will provide accurate information to families and small businesses so they can ensure that bank loans, mortgages and credit cards are fair and rates are affordable. Having this system in place will also enable us to dismantle financial firms that are 'too big to fail' before they can again threaten America's economic future and stability."
The Wall Street Reform and Consumer Protection Act will stop large financial firms from risking retirement and college savings, while also helping prevent the type of financial practices that led to the financial meltdown. The bill establishes a process for shuttering large, failing firms whose collapse would put the entire economy at risk.
Highlights of The Wall Street Reform and Consumer Protection Act:
* Protects families and small businesses by ensuring loans, mortgages, and credit cards are fair, affordable and transparent through the creation of a new Consumer Financial Protection Bureau.
* Ends predatory lending practices, stops the need for more bailouts and puts checks on firms that are "too big to fail."
* Increases enforcement power and funding for the Securities and Exchange Commission (SEC).
* Enhances oversight and transparency for credit rating agencies.
* Allows limits on executive pay by giving shareholders a say on salaries and requiring independent directors on compensation committees.