Today We Start Rebuilding the American Middle Class
Washington, DC — Today the US Senate passed an historic financial reform bill, the Wall Street Reform and Consumer Protection Act, reigning in some of the most egregious practices of banking industry that led to the recent financial meltdown. In response to the 60-39 Senate vote that sends the bill to President Obama, the national policy center Demos, which worked to advance the legislation, issued the following statement from Heather McGhee, Director of Demos' Washington DC office.
"The meltdown of 2008 was a costly example of what happens when we dismantle the public structures that are the foundation of America's prosperity. Today we begin to rebuild those structures, and in so doing, start rebuilding the American middle class. With this vote, the Congress has begun writing financial rules of the road that will once again benefit Main Street, not just Wall Street. After the new consumer regulator opens its doors, Americans will open a checking account or apply for a loan with greater security because their lender will be accountable to basic standards of fairness and transparency. Investors will know that their broker-dealers are acting in their interest. Businesses hedging risk will know the real price of the derivatives contracts they buy. And if we have truly independent regulators with the will to stop reckless speculation, those regulators will have the power and tools to do so.
The Wall Street Reform and Consumer Protection Act's consumer reforms, investor protections and new Wall Street rules are necessary for a strong economic recovery. Although the Act falls short of transforming the financial sector in the way that the Glass-Steagall Act did after the last great banking crisis, it represents a victory of the public interest over the status quo in virtually every provision and rule. Demos applauds the tireless efforts of experts and advocates in Washington and across the country who have worked together to create this historic set of reforms."
Read Demos' overview of the bill, Financial Reform Roundup.