Connecticut Attorney General's Office

Press Release

Attorney General Praises Parts Of Financial Reform Bill, Says Consumer Financial Protection Agency Should Be Independent

March 15, 2010

“The financial reform legislation proposed today is a significant, serious, and long overdue step toward curbing Wall Street excesses that led our economy to the brink of disaster. I will closely examine this complex and comprehensive bill. 

“I am pleased that the proposed bill:

·         For the first time regulates hidden and opaque derivative markets that led to the failure of insurer AIG and helped cause the financial crisis;

·         Ends too big-to-fail by giving the FDIC authority to liquidate failing financial firms at industry expense, not taxpayer expense;

·         Institutes the Volcker Rule prohibiting banks from making risky bets on financial securities for banks’ benefit, endangering themselves, their customers and federal taxpayers who insure deposits;

·         Provides shareholders with some authority to rein in out-of-control executive compensation;

·         Takes steps to restore state authority to curb predatory lending and financial practices.

“My hope is that the legislation will create a consumer financial protection agency with independent authority to write and enforce rules that protect consumers. I continue to believe that the agency should be a standalone entity, but I will study the committee’s proposal.

“I still hope that this bill may be the basis for a bipartisan consensus to correct fundamental failings in Wall Street practices that pose an ongoing threat to our entire financial system.”