NTU urges all Representatives to vote “NO” on H.R. 4173, the so-called Wall Street Reform and Consumer Protection Act. This 1,300-page bill, introduced by Representative Barney Frank (D-VT), would unduly expand the federal government’s regulatory power over our free market while continuing to put taxpayers at risk with serious liabilities.
Among many other disastrous provisions, H.R. 4173 would establish yet another bureaucracy known as the Consumer Financial Protection Agency. A politically-appointed “credit czar” would then be given unprecedented oversight of the financial services of any business that provides loans, credit, or repayment plans. This includes retailers, telephone service providers, publishers, and even hospitals.
Most concerning, however, is the creation of a Financial Services Oversight Council that would be responsible for determining which companies are supposedly at risk to undermine financial market stability. The Council would be given $150 billion as a permanent placeholder for future bailouts. The fund will not only burden financial institutions that did not cause the current fiscal crisis, it could also saddle taxpayers with huge bailout authority costs if additional funds are needed.
While it is clear we need financial reform, 1,300 pages of bureaucratic red tape won’t get us there. As debate on this important issue continues, we hope Representatives will work in the best interest of American taxpayers and seek solutions that: clear away unnecessary regulations, streamline the rules that remain, empower investors to make their own informed choices, and end the moral hazard created by bailout guarantees.
A “NO” vote on H.R. 4173 will be significantly weighted as a pro-taxpayer vote in our annual Rating of Congress.
If you have any questions, please contact NTU Federal Government Affairs Manager Jordan Forbes at (703) 683-5700.
