Titus: Financial Reform Will Protect Consumers by Reigning in Wall Street Banks and Streamlining Regulation

Washington, D.C. – December 11, 2009 – (RealEstateRama) — Congresswoman Dina Titus of Nevada’s Third District voted today for critical financial regulatory reform that will help ensure that the financial crisis leading to the worst economic recession since the Great Depression will not happen again.  The Wall Street Reform and Consumer Protection Act passed the House by a vote of 223 to 202, and includes an amendment offered by Congresswoman Titus that protects seniors from predatory lending practices for reverse mortgages.

“Almost a year ago our economy was losing more than 700,000 jobs a month and our financial system was on the verge of collapse,” Congresswoman Titus said.  “Congress took necessary action to pull the nation back from the brink of disaster.  While we still have our work cut out for us to turn the economy around, there are hopeful signs on the horizon.  Now we must implement reforms that will prevent a similar crisis from ever happening again.  That means reigning in Wall Street banks that gave their executives obscene bonuses while steering our economy into a ditch and it means closing loopholes and increasing oversight enforcement so that government regulators cannot fall asleep at the wheel.”

The legislation creates a Consumer Financial Protection Agency that will consolidate and streamline enforcement of approximately 20 laws currently overseen by seven different agencies.  The agency will provide consumers with clear information and empower them to make good decisions.

“Southern Nevada has paid the steepest price for greed and the dangerous underregulation of the mortgage market with a foreclosure crisis that is dragging our economy down.  This bill will ensure that the proper regulation and safeguards are in place so that we can prevent a crisis of this magnitude in the future,” said Titus.

The Wall Street Reform and Consumer Protection Act ends taxpayer bailouts by establishing a process to dissolve failing large financial institutions in a way that does not wreak havoc on the whole economy.  The costs of unwinding these financial institutions will be borne by Wall Street firms, not taxpayers.

“These important changes to our financial system will streamline regulation and force Wall Street banks, hedge funds, and credit card companies to be more responsible and accountable.  Passage of this legislation means that the days of taxpayer bailouts are over once and for all,” Titus added.