Rep. Eshoo Votes to Bring Oversight to Wall Street and End Bailouts

December 11, 2009
Press Release

Washington, D.C. - Rep. Anna G. Eshoo (D-Palo Alto) voted today for H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009, which will strengthen enforcement and oversight of the financial sector, hold Wall Street and big banks accountable for their practices, and end the practice of taxpayer-funded bailouts.  The bill will also provide transparency and protect families and small businesses from predatory lending through the creation of a Consumer Financial Protection Agency.

"Irresponsible lending, investing, and trading on Wall Street caused the recession and cost Americans $14 trillion in net worth," Rep. Eshoo noted.  "Wall Street and the big banks must be reformed so that the recklessness which occurred will never happen again."

This legislation contains commonsense reforms which will:

  • Ensure financial stability by identifying and regulating financial firms that are so large, interconnected or risky that their collapse would put the entire financial system at risk.
  • End "Too Big to Fail" by establishing an orderly process for dismantling large, failing financial institutions in a way that protects taxpayers and prevents adverse effects on the rest of the financial system.
  • Address egregious bonuses by allowing shareholders a "say on pay" and limiting the risky pay practices used by bank executives which jeopardized the safety and soundness of big banks.
  • Toughen oversight and enforcement  to better protect investors, fill loopholes, and respond to financial frauds such as the Madoff Ponzi scheme.
  • Enhance transparency in credit markets whose ratings approved the excessively risky practices that led to the financial collapse.
  • Outlaw predatory industry practices that marked the subprime lending boom and ensure that borrowers can repay the loans they are sold.
  • Defend families and small businesses through the creation of a new Consumer Financial Protection Agency which is solely devoted to protecting Americans from unfair and abusive financial products and services.  This agency will ensure consumers get clear and concise information from banks, mortgage servicers, and credit companies and stop unfair practices.

"The financial crisis triggered the worst economic recession since World War II.  ," Rep. Eshoo said.  "H.R. 4173 will bring accountability to Wall Street, protect citizens in our District and all across the country, and prevent taxpayers from paying for Wall Street's mistakes."

The Wall Street Reform and Consumer Protection Act of 2009 passed the House by a vote of 223-202.

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