SENATOR COLLINS’ STATEMENT ON SENATE FINANCIAL REGULATORY REFORM VOTE
Following today's vote on a motion to proceed to debate of financial regulatory reform legislation, U.S. Senator Susan Collins released this statement:
"There is no question that Congress needs to pass legislation that fundamentally restructures our nation's outdated financial regulatory system to strengthen oversight and accountability, and to prevent the excesses that contributed to the deep recession that has cost millions of Americans their jobs. The truth is we should have done it before now. In March 2009, just a few months after the financial crisis unfolded, I introduced a financial regulatory reform bill to establish a council of regulators to identify institutions and financial products and practices that expose our economy to systemic risk so that regulatory gaps could be closed.
"As a former financial regulator in Maine, I believe Congress must act to reform our outmoded regulatory system in order to help protect America's consumers, workers, savers, and investors and to prevent future taxpayer-funded bailouts. Unfortunately, the bill sponsored by Senator Dodd does not accomplish that goal effectively. I am especially concerned that this bill could have unintended consequences for small community banks and small businesses that could actually impede our nation's economic recovery.
"I am encouraged, however, that people on both sides of the aisle say they want to have a bill that's bipartisan and addresses the serious issues facing our financial regulatory system-including the "too big to fail" phenomenon. Just yesterday, Senators Dodd and Shelby, the managers of the Senate bill, expressed optimism that a bipartisan compromise is close. It is disappointing that, instead of allowing for more time to do the work that needs to be done, the Majority Leader has chosen to rush to a divisive vote today on a partisan bill.
"My vote today should not be mistaken for a vote against debate. My vote is a call to set the partisan bickering aside, and to produce a thoughtful, bipartisan financial reform bill that would foster widespread support. Starting with a bipartisan bill will create healthy debate on the Senate floor on this critically important issue. I am confident that a strong, effective, bipartisan bill is within reach, and I am committed to working to help ensure that such a bill is signed into law.
"As we move forward in this debate, these are a few of the principles that are my legislative goals and that I will use to guide my decision-making in the days ahead.
"Any financial reform legislation should:
1. End taxpayer bailouts of huge financial firms;
2. Increase capital requirements as firms grow to provide a disincentive to their becoming "too big to fail;"
3. Make clear to executives that if they mismanage a firm into insolvency, they will lose their jobs;
4. Ensure that creditors face the same risk of loss they would in a bankruptcy court;
5. Ensure that those who originate mortgages share the risk to reduce the incentive to write poorly underwritten loans;
6. Create a council of regulators charged with identifying firms, products, or practices that pose a systemic risk to significant economic sectors;
7. Impose greater transparency and more effective regulation of derivatives and other complex financial instruments; and
8. Provide stronger protections for consumers."
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