Schiff Supports, House Passes Legislation to Rein in Wall Street, Protect Consumers

Washington, D.C.– Today, Rep. Adam Schiff (D-CA) supported and the House passed the Wall Street Reform and Consumer Protection Act to hold Wall Street accountable, end taxpayer bailouts for banks, and create a consumer financial protection bureau, putting consumers first.

“The Wall Street Reform and Consumer Protection Act will rein in the shoddy business practices and excessive speculation that characterized the meltdown of 2009, bringing our economy to the brink of ruin,” Rep. Schiff said. "These reforms are essential to restore accountability and transparency to our financial system, and to protect hard-working Americans from having their livelihood once again threatened by the irresponsible actions of others."

The legislation passed the House by a 237-192 vote to ensure taxpayers never again pay the price for irresponsible behavior on Wall Street.  Specifically, the bill creates a process to shut down failing firms, whose collapse would put the entire economy at risk.  After exhausting all of the company’s assets, additional costs would be covered by a “dissolution fund,” to which all large financial firms would contribute.

The bill also creates the Consumer Financial Protection Bureau (CFPB), a new consumer watchdog devoted to protecting Americans from unfair and abusive financial practices, including predatory credit card and mortgage lending that saddles consumers with loans they have no chance of paying back.  This independent bureau will provide clear and accurate information to families and small businesses to ensure that bank loans, mortgages, and credit cards are fair and affordable.  Just like the FDA does for medical safety, the CFPB will set safety standards to prevent practices such as hidden credit card fees, deceptive “fine print,” and other financial abuses that have escaped oversight thus far.

The bill has been called the “strongest set of Wall Street reforms in three generations” by Elizabeth Warren, Chair of the nonpartisan Congressional Oversight Panel, and has been endorsed by the AARP, Consumer Federation of America, Consumers Union, Council of Institutional Investors, National Fair Housing Alliance, National Restaurant Association, Public Citizen, SEIU, and US PIRG, among other organizations. The bill was publicly debated for more than 50 hours, and includes over 70 Republican and bipartisan amendments.