Maloney Applauds House OK Of Wall Street Reform
With an eye toward preventing last year’s Wall Street collapse that sent the nation’s economy on a downward spiral into the present recession, the House last week passed the most stringent changes in federal financial regulations since President Franklin Delano Roosevelt’s New Deal.
Congressmember Carolyn Maloney, who played a key role in the restructuring of the federal regulations, applauded the House action. “The comprehensive financial reforms establish clear rules for Wall Street, set strong enforcement powers of those rules and usher in a new era of consumer protection. Congratulations are due to [Financial Services Committee Chairman] Congressmember Barney Frank (D-Massachusetts) for his heroic efforts to craft a legislative package that will ensure a financial system that is safe and stable.”
Maloney (D–Queens/Manhattan) co-chair of the Financial Services Committee, said that she was also proud to note “Three innovations of mine were included in the final legislation: an ombudsman and a national toll-free bank complaint hotline within a new Consumer Finance Protection Agency (CFPA) and a requirement that the CFPA administrator report at least annually to Congress. These provisions will benefit consumers and improve communication between the agency, the Congress and the public at large.”
The legislation would give the government new powers to dismantle companies that threaten the economy and expose shady financial markets that have escaped the oversight of regulators.
The legislation also delves into the controversial area of Wall Street compensation. Company shareholders would get a non-binding vote on top executives’ salaries. Compensation practices, though not actual pay, at banks and bank holding companies would require approval of federal banking regulators.
President Barack Obama praised the House action and called on the Senate to act swiftly to get a bill to his desk. However, the Senate is not expected to take up a bill until next year.