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Congressman Lacy Clay

Representing the 1st District of Missouri

Clay Says Wall Street Reform & Consumer Protection Act Will Crack Down on Predatory Lending, End Worst Financial Abuses & Protect Working Families

June 30, 2010
Press Release

MEDIA CONTACT:
STEVEN ENGELHARDT (314) 504-4029
FOR IMMEDIATE RELEASE: WEDNESDAY 6.30.10

 

Clay Says Wall Street Reform & Consumer Protection Act Will Crack Down on Predatory Lending, End Worst Financial Abuses & Protect Working Families
Historic Legislation Will End "Too Big to Fail” Bailouts
 

-WASHINGTON, DC- Congressman Wm. Lacy Clay (D) Missouri praised the passage of H.R. 4173, the historic Dodd-Frank Wall Street Reform and Consumer Financial Protection Act conference report, which was approved in the U.S. House today by a vote of 237 – 192. The compromise bill is the most comprehensive and consumer friendly financial reform legislation since the Great Depression.
 

Reforming Wall Street is an essential step in restoring America’s economic security,” said the Congressman. “As a member of the Financial Services Committee, I have worked urgently to craft a bill that finally cracks down on predatory lending in a powerful way and also curbs the worst abuses by banks and other financial service providers. These reckless practices led to the near collapse of our economy and the severe recession that we are still striving to recover from.”
 

It’s time to teach the Wall Street speculators who took outrageous risks with other people’s money that the rules apply to them too,” said Mr. Clay. “This bill ensures that they will no longer be able to abuse and manipulate the financial markets and then ask other hard working people to pay for it.”
 

This legislation creates a new Consumer Financial Protection Agency, limits the fees banks can charge merchants to process debit-card transactions, empowers oversight bodies like the Securities and Exchange Commission, and helps ensure that taxpayers will never again be asked to bail out big banks and Wall Street firms who broke the rules.
 

The act has been endorsed by the AARP, Consumer Federation of America, Consumers Union, Council of Institutional Investors, National Fair Housing Alliance, National Restaurant Association, Public Citizen, SEIU, and US PIRG, among other organizations.
 

Major provisions included in the Wall Street Reform &Consumer Protection Act:


Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure that American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.
 

Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes.
 

Consumer Financial Protection Bureau, Independent Head: Led by an independent director appointed by the President and confirmed by the Senate.
 

New Offices of Minority and Women Inclusion: At federal banking and security regulatory agencies, the bill establishes an Office of Minority and Women Inclusion that will address employment and contracting diversity matters. The offices will coordinate technical assistance to minority-owned and women-owned businesses and seek diversity in the workforce of the regulators.
 

Interchange Fees, Protects Small Businesses from Unreasonable Fees: Requires the Federal Reserve to issue rules to ensure that fees charged to merchants by credit card companies for credit or debit card transactions are reasonable and proportional to the cost of processing those transactions.
 

Neighborhood Stabilization Program: Provides $1 billion to States and localities to combat the impact on neighborhood of the foreclosure crisis.
 

For more information on the Wall Street Reform and Consumer Protection Act, and many other federal issues, please visit www.lacyclay.house.gov

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