( Washington, DC ) Today, Congressman John Yarmuth (KY-3) voted in favor of the Wall Street Reform and Consumer Protection Act, landmark legislation aimed at preventing future economic crises that ends taxpayer-funded bailouts and strengthens consumer’s rights against the deceitful practices of big banks and credit card companies.

 

“For years, Republicans in Washington ignored the reckless behavior of Wall Street, the mortgage industry, and big banks.   The result of their failure is an economic crisis that continues to jeopardize the financial security of Louisville families and small businesses,” said Congressman Yarmuth. “ As we continue to work to pull our economy back from the brink, the legislation we approved today will hold major financial institutions accountable for their actions, ensuring that Wall Street will never again be able to play Monopoly with the lives of American families.”  

 

The Wall Street Reform and Consumer Protection Act – which was approved by the House of Representatives by a vote of 223 to 202 - ends the concept of   “too big to fail,” providing for the dissolution of failing financial firms before risky economic choices negatively impact the economy.

 

The legislation also ends taxpayer-funded bailouts . Firms acting irresponsibly will be preemptively dismantled with funds contributed from the financial services industry – not the taxpayer .

 

Other provisions include:

• Creates the Consumer Financial Protection Industry, streamlining the bureaucracy to prevent predatory lending practices and make sure consumers get the clear information they need to be empowered to make the best choices for the financial future of their families.

 

• Gives shareholders a say on bonuses given to company executives and limits risky pay practices of executives at major financial institutions.

 

• Closes loopholes and strengthens oversight on large banks and financial firms – including new regulation of credit rating agencies and riskier hedge funds, derivatives, and other complex financial deals.

 

• Protects 401(k) and pension plans by stopping big wall street institutions from taking unnecessary risks that threaten the financial system and your assets.

 

• Enhances oversight and transparency of the credit rating agencies whose seal of approval gave way to many of the excessively risky practices that led to financial collapse.

 

 

The legislation now moves to the Senate.