June 10, 2010

Dear John,

Thank you for contacting me with your thoughts regarding Wall Street reform and accountability. I appreciate hearing your views on this important topic. 

The economic crisis that began two years ago exposed shortcomings in the oversight of financial firms and financial products and highlighted the need for change. Reforms to modernize our financial regulatory system, including increased accountability for banks once deemed "too big to fail," are critical steps to ensuring long-term economic growth and stability for hardworking Americans and small businesses. 

As you may know, the Restoring American Financial Stability Act (H.R. 4173) passed the U.S. Senate on May 20, 2010, by a vote of 59 - 39. I was proud to vote for this legislation because I believe that it offers an effective response to the excesses of Wall Street and that it will strengthen our economic stability without undermining the financial sector. The United States must be able to innovate and compete in a global economy, but must do so in a measured way that does not put our economy at risk. Most importantly, the bill takes several steps to put Americans back in charge of their financial futures.

The recently passed Wall Street reform bill contains a number of vital provisions. For example, the legislation will establish the Financial Stability Oversight Council, made up of representatives from the Treasury Department and all financial regulatory agencies, to coordinate efforts to identify and address risks to the financial system. The legislation also institutes rules to end the era of financial firms that are "too big to fail," and ensures that troubled companies, no matter how big or complex, can be liquidated at no cost to taxpayers. The era of taxpayer-funded bailouts is over.

The transparency measures in the bill are also critical. The government will have a greater ability to regulate Wall Street, and shareholders will have more say regarding CEO pay. One of the main causes of the financial meltdown in 2008, the over-the-counter derivatives market, will also finally be regulated. Perhaps most importantly, the legislation stipulates that repaid bailout funds must be used to pay down the deficit, not increase further government spending. 

I am also pleased with the strong consumer empowerment provisions in the bill. The legislation will create a federal consumer financial protection watchdog to provide American consumers with the information they need to make smart financial choices for themselves, and clamp down on hidden fees, unclear information, predatory practices, and unscrupulous lending. Consumers deserve someone looking out for them.

In addition, you may be interested to know that a bipartisan amendment that I sponsored, S. Amdt. 4016, was included in the final Wall Street accountability legislation to give consumers free access to their credit score every time it is used against them. Under my amendment, if consumers are turned down for a loan or purchase, receive a higher interest rate on a loan or unfavorable terms on a credit card, they will automatically receive a copy of their credit score, free of charge. In the past, the law did not require lenders to provide consumers with their credit score in such situations, depriving consumers of crucial financial information about themselves and their financial standing.

Throughout the debate on Wall Street reform, I have focused on protecting Coloradans from future financial crises, while encouraging our slowly recovering economy to continue to grow and innovate in a prudent and sustainable way. I believe this bill will help secure the American economy as a whole. I know that many small businesses, community banks, and individual Coloradans - who have always played by the rules and used sound business judgment - were negatively affected in the aftermath of the failings of Wall Street's big banks. While not a perfect bill, this legislation is a big step on the way to restore our economic prosperity.

I will continue to listen closely to what you and other Coloradans have to say about matters before Congress, the concerns of our communities, and the issues facing Colorado and the nation. My job is not about merely supporting or opposing legislation; it is also about bridging the divide that has paralyzed our nation's politics. For more information about my positions and to learn how my office can assist you, please visit my website at www.markudall.senate.gov. 

Warm regards,
 

Mark Udall
U.S. Senator, Colorado

MEU/hpd