So this week Senator Durbin and I plan to introduce legislation to create a new regulator to provide consumers with stronger protection.

By no means is this problem exclusive to financial services.

we became a country that consumed more than we produced, borrowed more than we saved, and imported more than we exported.

The President has now made clear that regulatory modernization, which will protect consumers and investors in this way, is a top priority for him.

the greatest challenge President Obama has after he gets us out of this financial mess is to figure out how we get back to those traditional values.

I pledge personally over the coming months that we will rebuild the nation's financial architecture from the bottom up

the proposal that Senator Durbin and I are making is one part of that, but there are lots of other parts.

It is an historic undertaking, one of the most important debates in which we have engaged here in a long time.

This hearing will focus on critical consumer, investor, and shareholder protections in financial services.

the time is right for a financial services regulator with consumer focus.

But the deceptive practices, the predatory practices, we have seen them in the mortgage industry.

I am very grateful to have a partner in this in Senator Shelby.

Thank you for holding this hearing, and unfortunately I got here a little late, so I am going to take a little bit of my time and read my opening statement, if you don't mind.

I think this hearing is really important. We have a great economic crisis in our country and it extends from one end to the other.

If we consolidate both rulemaking and enforcement in this one agency, then I am comfortable with the funding model.

We looked at everything from predatory lending and foreclosures to the risks of derivatives in the banking system.

Is it time to create a new regulator whose sole function is the fair treatment of individual customers?

We are going to have one of the best Housing Secretaries that we have ever had.

But if it goes to two-thirds, shouldn't that be a real change in the housing markets and rates of foreclosure, and even shouldn't it help us find a floor?

I think the public has this view that the servicers are little entrepreneurs all over the lot.

The problem of people getting financing is just everywhere.

When a country, year after year, consumes more than it produces, imports more than it exports, borrows more than it saves, the chickens always come home to roost.

But I think, yes, and Mr. Chairman, I think most of the big banks that have already received TARP money who are servicers have agreed to be part of this, isn't that right?

And that is going to mean some real stuff to the stability of the banks and of the whole financial markets, because they are still holding this paper.

I really would say that your program is going to have a significant and deep effect on housing markets, improving them, and that can reverberate throughout the whole economy.