December 13, 2009

Financial Regulatory Reform

Last week, the House considered H.R. 4173: Wall Street Reform and Consumer Protection Act of 2009. You may recall that the House Financial Services Committee, of which I am a member, had been working on many aspects of this legislation for much of the fall. We combined several separate bills into one comprehensive bill. I believe that we have identified most of the root causes of the financial crisis and fixed the problems so that we will never face another such collapse in the future.

The Wall Street Reform and Consumer Protection Act contains a number of provisions that tighten oversight of Wall Street and put a stop to predatory lending. The bill creates a Consumer Financial Protection Agency (CFPA) to safeguard consumer interests and ensure the integrity of available financial products. It also sets up a Systemic Dissolution Fund, paid into by large financial companies and hedge funds, that would direct the future orderly closure of failing institutions. This is designed to prevent another tax payer-funded bailout. In addition, H.R. 4173 requires that lenders make responsible mortgage loans that consumers will be able to repay, ending the practice of abusive subprime lending.

I am particularly proud that I was able to work with Chairman Barney Frank to make it easier to hold credit rating agencies accountable. We included an amendment that lowers the liability standard for credit rating agencies, which will allow more investors to bring cases against credit rating agencies that have neglected to do their job. Many credit rating agencies gave their seal of approval to companies whose excessively risky practices led to the financial collapse. We need to be able to hold them accountable to protect investors in the future.

I voted YES. H.R. 4173 passed in the House and the entire vote is recorded below:

Appropriations

To date, Congress has completed work on just five of twelve appropriations bills for Fiscal Year 2010, and the federal government has been operating under continuing resolutions since October 1. To address the bulk of this unfinished business, on Thursday the House took up the conference report on H.R. 3288: Consolidated Appropriations Act of 2010. This so-called “minibus” includes the Commerce-Justice-Science, Financial Services, Labor-Health & Human Services-Education, Military Construction-Veterans Affairs, State-Foreign Operations, and Transportation-Housing & Urban Development spending bills. This legislation, when coupled with the forthcoming Defense Appropriations bill, will finish the process of allocating funds for FY 2010.

The conference report contains funding for many significant programs that are vital to many of my constituents in the 8th District. For instance, the bill includes: $45.1 billion for the Veteran’s Health Administration, $1.4 billion for displaced worker training programs, $14.5 billion for Title I education funding for disadvantaged children, $5.1 billion in low-income heating assistance, $2.2 billion for community health centers, and $31 billion for the National Institutes of Health – many of whose research programs are conducted in premier Massachusetts institutions. In addition, H.R. 3288 allocates funds for some of our most important international priorities, like $2.4 billion for international peacekeeping and $7 billion to fight HIV/AIDS globally. The government cannot continue to operate without these funds, and it is my hope that the Senate will act quickly to approve the conference report and send it to the President for his signature.

I voted YES. The conference report on H.R. 3288 passed in the House and the entire vote is recorded below:

Community Health Centers

This past Wednesday, President Obama announced nearly $600 million in American Recovery and Reinvestment Act awards to be granted to community health centers across the country. Of the 85 total health centers to receive awards, four of the awards were granted to health centers in the 8th District. This money will be used for major construction and renovation projects, adoption of Electronic Health Records (EHR), and other Health Information Technology (HIT) systems.

As co-chair of the Community Health Centers Caucus, I am proud to have fought for the important mission of the community centers movement. Today, health centers provide quality care to more than 17 million patients, about 40 percent of whom have no health insurance. At a time where primary care services are unavailable for so many Americans, this money will help provide access to more than half a million additional patients in many different communities, and specifically our own. Furthermore, new job opportunities in construction and health care will be available as stimulus money continues to do what it was intended to do.

Grants designated for the 8th District are listed below. They were awarded through a competitive process:

Job Creation

In a speech Tuesday, President Obama announced that he will redirect funds from the Troubled Asset Relief Program (TARP) to job creation efforts in an attempt to further bolster the economy. While details have not been publicized, I am pleased that the idea I proposed to the President in a letter dated November 16 has received attention.

Treasury Secretary Timothy Geithner this week extended TARP until October 2010, stating that the program is still needed “to assist American families and stabilize financial markets.” Some of the new uses for TARP funds are expected to include freeing up credit markets for small businesses to encourage the hiring of new workers, promotion of job creation through home weatherization programs, and increased investment in transportation infrastructure. I look forward to seeing the President’s plans rolled out quickly so we can see an immediate impact and continue the task of getting people back to work.

What's Up Next

Next week the House is expected to consider the conference report on H.R. 3326: Department of Defense Appropriations Act of 2010.