Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today said a law enacted today will bring new accountability to Wall Street and work to avoid an economic meltdown like the one from which we're trying to recover.

Bingaman voted last week to send the Wall Street Reform and Consumer Protection Act to the White House.

"Wall Street recklessness is largely responsible for the loss of millions of American jobs over the past two years.  This bill enacts reforms that will protect Americans and prevent Wall Street from wreaking such havoc on our economy in the future," Bingaman said.

Highlights of the Wall Street Reform and Consumer Protection Act

Consumer Protections with Authority and Independence: The bill would create a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.

Ending Too Big to Fail Bailouts: The bill would end the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed's authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.

Advance Warning System: The bill would create a council to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.

Transparency & Accountability for Exotic Instruments: The bill would eliminate loopholes that allow risky and abusive practices to go on unnoticed and unregulated -- including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders.

Executive Compensation and Corporate Governance: The bill would provide shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes.

Protecting Investors: The bill would provide tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses.

Enforcing Regulations on the Books: The bill would strengthen oversight and empower regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefits special interests at the expense of American families and businesses.