Statement of Rep. Maloney on Financial Reform Conference Report
WASHINGTON, DC – Rep. Carolyn Maloney (D-NY) today offered this statement following the final report of the Conference Committee early this morning.
“This is a new day. Just over twelve months ago, President Obama called for major reforms as we were desperately trying to climb from the depths of the financial crisis. And today we've achieved the vast majority of his goals. He can attend the G20 meeting with a stronger hand to help lead the world out of this recession.
“With the package the Conference Committee approved this morning, Congress is closing in on the finish line for the biggest and best package of financial reforms since the Depression.
“We have established a Consumer Financial Protection Bureau; we've established a Systemic Risk Council for regulators to oversee all aspects of the financial system; we've required that banks no longer trade for their own accounts; and we've established an orderly liquidation process to wind down troubled financial institutions.
“It's not just consumers who will benefit. We've required that the Federal Reserve establish fairer interchange rates charged for debit cards-- that are more in line with the actual cost of processing a transaction. That will help small businesses all across America-- the engine of job growth.
“On interchange, I'm glad to have worked with Sen. Durbin to work out language that preserves the option of pre-paid debit cards for those who don't have bank accounts and preserves their use by government agencies to distribute benefits.
“On derivatives, I have long supported bringing them out into the open on public exchanges. But I believed, along with Chairman Frank, FDIC Chair Sheila Bair, and SEC Chair Mary Schapiro that Sen. Lincoln's original derivatives amendment went too far in banning all derivatives. So I was glad that the final Conference compromise supported allowing companies and financial institutions that needed legitimate hedging of actual risk to do so on transparent open clearinghouses and banned the riskiest and most exotic derivatives.
“I think this law is a good solid middle ground that will help prevent the kind of meltdown we experienced in 2008-- that meltdown itself cost New York jobs, and is something we have to avoid. We need a "cop on the beat" to keep these things from happening again-- just ask a New Yorker who was laid off.
“As President Obama has said, everyone has a stake in financial reform: whether you’re a family trying to buy your first house, a parent trying to fund your child’s education, an employee trying to save for retirement, or an entrepreneur trying to expand your business.
“I agree with Sheila Bair at the FDIC when she says these new rules end "too big to fail." We've made sure that it's the risk-takers, not the taxpayers, who take the hit when something goes wrong.”