NTU urges all Senators to vote "NO" on S. 3217, Senator Dodd's so-called "Restoring American Financial Stability Act."
This legislation is flawed, incomplete, and would unduly expand the federal government's regulatory power over our increasingly threatened free market. The bill would create a Bureau of Consumer Financial Protection, which would grant a politically appointed "credit czar" with an unprecedented capacity to meddle in an extremely wide variety of financial services. Furthermore, S. 3217 would establish a Financial Stability Oversight Council with authority to regulate systemic risk, thereby codifying into law the notion of "too big to fail.
Equally troubling is the bill's failure to directly address Fannie Mae and Freddie Mac – the government-sponsored enterprises that caused much of the financial crisis we currently face. CBO predicts the American people will spend $369 billion to bail out Fannie and Freddie by 2019, and that is inexcusable. Despite honest efforts from lawmakers to include amendments that would rein in the housing giants, the Senate has chosen to brush the issue aside and put taxpayers even further at risk.
We all agree on the need for financial reform, but this is not the right reform. It is our hope that Congress will return to the drawing board and implement solutions that empower consumers and investors, rather than government bureaucrats.
Roll call votes on S. 3217, the "Restoring American Financial Stability Act," including cloture and final passage, will be heavily weighted in our annual Rating of Congress.
If you have any questions, please contact NTU Director of Government Affairs Jordan Forbes at (703) 683-5700