John E. Morton, managing director of the Pew Economic Policy Group, issued the following statement on the passage of S. 3217, the Restoring American Financial Stability Act of 2010.
“The financial reform bill passed today by the Senate includes several key provisions that, when effectively implemented, will be essential tools for real financial reform. It creates a framework to establish an early-warning system that will monitor and respond to signs of heightened systemic risk. The bill also addresses the ‘Too Big To Fail' problem, which will reduce the chances of future bailouts and help ensure that no large financial firm's failure will collapse the entire system. It will also increase transparency in markets and substantially improve consumer protections.
“American families have suffered the devastating and protracted effects of an economic crisis that has cost the nation dearly. A recent Pew study determined that the average U.S. household lost nearly $6,000 in income due to reduced economic growth during the acute stage of the financial crisis from September 2008 through the end of 2009. This legislation will help guard against future collapses by better regulating the financial sector, encouraging good risk management practices and protecting the taxpayer and the economy when big financial institutions get into trouble.
“The Senate has acted. It is now incumbent on Congress to send to the President's desk a strong bill that will renew America's confidence in the economy by providing the real financial reform that taxpayers deserve.”
Pew is no longer active in this line of work, but for more information, visit the main Pew Financial Reform page.