What We Need for Financial Reform

Press Release

Pingree also tells Congressional leaders to rein in derivative trading.

Congresswoman Chellie Pingree has told Congressional leaders that strong consumer protection, an end to speculation on heating oil and a crackdown on the secretive trading of complex and risky derivatives should all be part of comprehensive financial reform now being considered in Congress.

"Over the last year and a half I have heard from countless Mainers sharing their concerns about our system of financial regulation that has allowed many on Wall Street to gamble their livelihoods and defraud consumers, leading to the deep economic downturn we have experienced in the last two years and contributing to the loss of 8 million jobs. People are angry, and justifiably so," Pingree told Congressional leaders.

The House and Senate have passed different versions of a reform bill, and now negotiators are coming up with a compromise between the two. Pingree cited a number of components that should be in the final version.

Pingree said reform should include the following:

A strong Consumer Financial Protection Agency whose sole mission is to look out for consumers' interests. Such an agency would closely regulate big banks and credit card companies to protect consumers' rights. Pingree says consumers deserve credit card agreements they can understand and protection from teaser rates and fees hidden in the small print.

An end to speculation on home heating oil, which Pingree says hit Maine homeowners particularly hard. Pingree says speculation adds up to $1 a gallon to the cost of home heating oil, and she says the financial reform bill should end that speculation to help lower and stabilize the price of heating oil.

The strongest possible regulation of derivative trading. Pingree told Congressional leaders that these complex financial instruments are responsible for billions of dollars in losses to investors, and are at the heart of the financial meltdown. She urged them to adopt the strongest possible language to regulate derivatives and make sure they are traded openly and subject to strong capital requirements.

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