SENATOR COLLINS' STATEMENT ON MOTION TO PROCEED TO FINANCIAL REFORM LEGISLATION

"As I have said all along, there is no question that Congress must pass legislation that fundamentally restructures our nation's outdated financial regulatory system to strengthen oversight and accountability, end taxpayer bailouts of financial firms, and prevent the excesses that contributed to the deep recession that has cost millions of Americans their jobs. That is why I urged Senate leaders to allow sufficient time for bipartisan negotiations to continue on the financial regulatory reform bill.

"Now that negotiations between Chairman Dodd and Ranking Member Shelby have concluded, I will support proceeding to debate the legislation on the Senate floor. I continue to be concerned, however, by several provisions in the current Senate bill. Among the chief concerns I have is that the bill completely fails to address the dysfunctional operations of Freddie Mac and Fannie Mae, which were major contributors to the collapse of the housing market. As the Senate considers amendments to the bill, I am hopeful that the following measures will be included in any final financial regulatory reform bill:

• Increase capital requirements as firms grow to provide a disincentive to their becoming "too big to fail;"
• Make clear to executives that if they mismanage a firm into insolvency, they will lose their jobs;
• Ensure that creditors face the same risk of loss they would in a bankruptcy court;
• Ensure that those who originate mortgages share the risk to reduce the incentive to write poorly underwritten loans;
• Create a council of regulators charged with identifying firms, products, or practices that pose a systemic risk to significant economic sectors;
• Impose greater transparency and more effective regulation of derivatives and other complex financial instruments; and
• Provide protections for consumers."

###