Wall Street Reform Update

Statement

Dear Friends,

Last night, I voted with a majority of my House colleagues to pass Wall Street Reform. Once the Senate votes on the bill in the coming weeks, we will send the Dodd-Frank Wall Street Reform and Consumer Protection Act to President Obama's desk, and finally hold Wall Street accountable by putting an end to bailouts and the idea that banks can be "too big to fail."

Most importantly, Wall Street Reform will protect the pocketbooks and financial futures of American consumers, who lost $17 trillion in retirement savings and net worth as a result of the reckless behavior of Big Banks.

So what's in the bill for you? For one, Wall Street Reform will make it illegal for mortgage brokers to advise you to make financial decisions that are not in your best interests. Believe it or not, such a common sense consumer protection doesn't exist right now. This loophole contributed to the financial crisis because mortgage brokers are rewarded financially for steering clients into more costly subprime loans. Wall Street Reform establishes penalties for such irresponsible lending practices.

Additionally, Wall Street Reform creates the Consumer Financial Protection Bureau--a much-needed independent watchdog agency that looks out for your interests. The bureau's responsibility is to protect Americans from hidden fees, abusive terms, and unfair or deceptive practices regarding credit cards, student loans, mortgages and other financial products. The legislation includes my amendment requiring the new Bureau to enact any needed regulation to protect seniors from unscrupulous lenders that pedal reverse mortgages with financially abusive terms. For the first time, we will have an agency dedicated to protecting the interests of consumers, not financial firms.

The House Committee on Financial Services has a useful summary of the Wall Street Reform bill, a helpful list of myths and facts about Wall Street Reform, and a clear explanation of how the bill would reduce the deficit by $3.2 billion over 10 years.

With passage of Wall Street Reform in the Senate and President Obama's signature, this Congress will again show Americans that we are with the people, not the "too big to fail" banks.

Sincerely,

Congresswoman Jan Schakowsky
Member of Congress

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