How Wall Street Reform Is Working for You


Uploaded by BarackObamadotcom on 21.07.2011

Transcript:
The financial crisis and the recession were not the result of normal economic cycles
or just a run of bad luck. They were abuses
and there was a lack of smart regulations,
so we're not just going to shrug our shoulders and hope it doesn't happen again.
The first few years of the century were boom times on Wall Street.
Mortgage lenders drove a housing boom with subprime loans, offered on terms
that seemed too good to be true.
And they were,
but before the bubble burst, Wall Street moved to capitalize on record home sales
developing new largely unregulated financial products, to bundle-up and
trade these suspect mortgages.
Everything worked as long as house prices kept going up until suddenly, they didn't.
In September 2008, Lehman Brothers collapsed triggering a
full-blown financial crisis.
Markets plummeted, millions of jobs were lost
and trillions in savings were erased.
When President Obama took office, he took action to protect consumers and our
economy and make sure a crisis like this
could never happen again.
One year ago this week, he signed a law that does just that – the Wall
Street Reform and Consumer Protection Act.
Here's what it does:
It sets up a Consumer Financial Protection Bureau to safeguard people from
dishonest mortgage lenders; unfair fees on credit cards; and complicated fine-
print designed to exploit Americans who apply for loans.
This followed the passage of a landmark law in 2009, cracking down on
deceptive practices by credit card companies. It brings an end to the days
of too big to fail,
giving regulators the authority to intervene early on behalf of the
American people, so that no single bank's troubles can endanger the broader
economy
and guarantees that when banks do fail, their management and ownership will be
the ones to pay the consequences, ensuring no more tax-payer bailouts of
banks. And finally, it ends the shadow banking system that allowed Wall Street
to hide reckless behavior from regulators.
Fairness, transparency,
commonsense rules of the road
all sounds pretty good right?
Yet, the fact is that some on Wall Street and their allies in Washington don't want
to change their ways. They're spending hundreds of millions of dollars lobbying
to roll back this law,
and they have found strong allies in the new Republican Congress.
There is an army of lobbyists
and lawyers, right now, working to water- down the protections and reforms that
we passed.
They've already spent tens of millions of dollars this year,
to try to weaken the laws that are designed to protect consumers.
And they've got allies in Congress who are trying to undo
the progress that we've made.
We're not going to let that happen.
This reform represents the most significant action taken since the Great
Depression to curb the excesses of the financial sector –
protecting everyday Americans from further abuses and prevent another
economic collapse.
But there's much more to do and President Obama is committed to ensuring
that Wall Street plays by the rules,
and Americans get a fair shake at building their own secure financial
future.