SENATOR COLLINS' STATEMENT ON FINANCIAL REFORM BILL

"While the financial reform bill passed by the Senate is far from perfect, I believe it is necessary for Congress to pass legislation that fundamentally restructures our nation's outdated financial regulatory system to prevent future taxpayer bailouts, strengthen oversight and accountability, and guard against the excesses that contributed to the deep recession that has cost millions of Americans their jobs. This bill represents a significant step toward addressing the serious shortcomings in our financial regulatory system-including the "too big to fail" phenomenon.

"I am pleased that the bill includes my amendment, which was endorsed by FDIC Chairman Sheila Bair, to impose strong capital requirements on financial institutions. My amendment tackles the "too big to fail" problem by requiring large financial firms to have adequate amounts of cash and other liquid assets available to help absorb losses during times of financial stress. This will strengthen the economic foundation of these firms and help prevent future economic crises.

"The Senate-passed bill also includes a core reform that I proposed more than a year ago. It would create a council of regulators to identify financial institutions, practices, and products that pose a risk to financial markets or to our economy, such as the lax mortgage lending standards and the explosive growth of credit default swaps that helped trigger the current economic crisis. This council will help prevent regulatory "black holes" and ensure more effective oversight of our financial system."