On the recordJuly 15, 2010
I think we all agree that the purpose of financial regulatory reform should have been to tackle the problems that led to the financial crisis in the first place. That means serious reform must, at the very least, end too-big-to-fail financial institutions and rein in two government-sponsored enterprises, the GSEs, Fannie Mae and Freddie Mac. But despite its size and the hype behind it, the bill before us fails in those two key respects. Moreover, even though Main Street did not cause the problem, the bill is so pervasive in its regulatory reach that it creates new burdens for Main Street businesses. For example, a July 4 Wall Street Journal news article entitled 'Finance Overall Casts Long Shadow on the Plains' explains how new derivatives rules will harm America's livestock farmers. The biggest new problem it causes is the harm to the availability of credit, something our colleague, Senator Gregg from New Hampshire, has talked a lot about. It implements one-size-fits-all capital standards and uses flawed funding mechanisms. It also perpetuates bailouts, and burdens small businesses with new regulations.
