Congresswoman Tulsi Gabbard today voted against a bill that would weaken consumer protections against risky bank practices. The Swaps Regulatory Improvement Act (H.R. 992) would allow banks to continue risky derivatives trading with depositors' money, and the promise of a taxpayer safety net. The bill passed the House today by a vote of 292-122.
"This bill eliminates the basic protections in current law that would keep the federal government from bailing out or subsidizing risky bank activity," said Congresswoman Tulsi Gabbard. "The American people have made clear: business as usual, where the nation's largest banks profit from risky bets, but run to the government with their hands out when times get tough, is unacceptable and must end. We still have fresh memories of the 2008 financial crisis that wreaked havoc on the American economy. We cannot forget the tough lessons we learned by unraveling crucial bank regulations and consumer protections now."
H.R. 992 would essentially repeal Section 716 of the Dodd-Frank Act, a provision that will force many types of swap dealing activities to be "pushed-out" from banking institutions that are backed by the taxpayer. H.R. 992 would undo these reforms before regulators have a chance to finish them and could allow risky practices to creep back into our financial system, putting our economy and the American taxpayers at risk.