On the recordJune 30, 2010
Since the 2008 financial crisis that reduced the values of their homes and savings, our constituents have demanded action and answers. What went wrong and what will Congress do to make sure it doesn't happen again? This bill answers with strong protections for American families. The problems started in our neighborhoods where too many home buyers took out loans they couldn't afford and too many lenders approved those loans. This bill ends the period of no-doc loans and drive-by appraisals with new lending standards, with risk retention to ensure lenders want to keep those good loans on their books, and rating agency liability and reform. Next, derivatives were at the heart of the AIG failure. This bill creates regulation where it did not exist in this multitrillion market with required transparency, ensuring that these trades are exchange- traded cleared and-or reported. Capital reserves will be required to back up the risks they take and protect the entire system. And, most important, it ends taxpayer bailouts. Those companies who take risk, if you fail, you're fired. Your shareholders will lose money and the financial industry is responsible for liquidation. The SPEAKER pro tempore. The time of the gentlewoman has expired. Mr. McGOVERN. I yield the gentlewoman 30 additional seconds.
