Groups Applaud Senator Dodd's Proposed Financial Reforms

On Tuesday Senator Dodd announced his plans to reform the nation’s financial system.  His comprehensive legislation was applauded by AFFIL’s Partners and Americans for Financial Reform, a coalition of over 200 groups.

The legislation proposes a strong Consumer Financial Protection Agency and will address the Community Reinvestment Act – both important points for consumers and homeowners.

Here’s how AFR explains the legislation:

We are particularly pleased that Chairman Dodd’s legislation includes a robust Consumer Financial Protection Agency (CFPA). The CFPA is one fundamental cornerstone of any real reform and must be included in any final legislation.  We are heartened that the Community Reinvestment Act will be addressed in the legislation, as it was in the original proposal President Obama introduced in his White Paper.

The proposal begins to address the problems of the unregulated derivatives markets, playing with the economy like a big banker’s personal casino, gambling with our retirement plans, college savings and homes.  This draft will move us toward the open trading of derivatives, requiring transparency and accountability. We especially need to be sure there is a narrow scope of any end user exemptions.

The proposal begins to address the problems of systemic risk, and wind down failing institutions without future taxpayer bailout.