Dear Mr. Ferrari:
Because you had written to me some time ago in support of Wall Street reform, I wanted to follow up and share some good news with you about this important issue.
On May 20, 2010, the Senate passed S.3217, the Restoring American Financial Stability Act of 2010, by a vote of 59 to 39. This bill will bring real reform to our financial system. Never again shall we allow Wall Street to engage in the reckless speculation and irresponsible lending practices that led to the worst economic collapse since the Great Depression and caused millions of Americans to lose their jobs, their homes, and their savings.
This landmark Wall Street reform bill includes my amendment ensuring in plain English - and with the force of law - that taxpayers will never again have to bail out a reckless Wall Street firm. I am happy to announce that my amendment passed the Senate on a 96 to 1 vote.
In addition, S.3217 would
o Create an early warning system to help prevent future crises;
o Establish a strong consumer financial protection watchdog to protect American families from being victimized by shady financial practices;
o Regulate the exotic securities and derivative instruments that crashed the economy; and
o Create real accountability and transparency on Wall Street.
S.3217 also contains a provision based on my proposal to ban so-called "steering payments" - bonuses given by banks to mortgage brokers to place homeowners in riskier and more costly subprime loans that many families could not afford. I worked closely with the Banking Committee on the final language in the bill, which will ban steering payments and require that lenders confirm a borrower's ability to repay the loan.
As President Obama has noted, in the years leading up to financial crisis, some on Wall Street forgot that behind every dollar traded or leveraged, there is a family looking to buy a house, pay for an education, open a business, or save for retirement. What happens on Wall Street has real consequences across our country and across our economy.
The House and Senate are now working out the final language for Wall Street reform legislation. Be assured that I will keep working to enact a bill that protects investors and taxpayers while laying a strong foundation for future economic growth and job creation.
Again, thank you for writing to me. Please feel free to contact me again about this or other issues of concern to you.
United States Senator
p.s. Letters sent to the U.S. Capitol are subject to a lengthy screening process.
Please address mail to me at 312 North Spring Street, Suite 1748, Los Angeles CA 90012.
United States Senator
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