President Barack Obama today will sign into law the Wall Street Reform
and Consumer Protection Act. The final legislation was approved by the
Senate last week by a vote of 60 to 39, ending an over year-long effort
to pass legislation aimed at preventing another financial crisis.
The law represents the biggest overhaul of the U.S. financial-regulatory
system since the 1930s. The White House has heralded the legislation as
"the strongest consumer financial protections in history." This
new law will have a real impact on every citizen. We will now have a Sheriff
on Wall Street and as part of the financial reform, we now have the strongest
consumer protections in history. Today is a big step towards empowering
Main Street and reigning in reckless behavior on Wall Street. My interview
this morning with FOX TV anchor Andy Dominiani
The comprehensive legislation will overhaul regulations in the financial
sector. It establishes a new Consumer Financial Protection Bureau to regulate
consumer financial products and services like home mortgages, car loans,
and credit cards.
"These protections will be enforced by a new consumer watchdog with
just one job: looking out for people - not big banks, not lenders, not
investment houses - in the financial system. Now, that's not just
good for consumers, that's good for the economy," President Obama
said in prepared remarks released by the White House ahead of the signing ceremony.
The following are a few additional highlights of the new 2300 page Wall
Street Reform Bill expected to be signed into law today.
• Creates the first ever national consumer complaint hotline
• Cracks down on unfair mortgage lending practices
• Ends "Too Big to Fail" Bailouts - no more taxpayer funded bailouts
• Gives SEC authority to impose a nationwide "fiduciary duty" standard of care on all stockbrokers
• Orders the SEC to evaluate the fairness of mandatory securities
arbitration for claims against brokerage firms
• Encourages "whistleblowers" by creating rewards of up
to 30% of funds recovered for reporting violations of securities laws
• Provides permanent increase in deposit insurance on bank accounts
from $100,000 to $250,000