This bill punishes Main Street, while continuing to reward Wall Street

WASHINGTON, D.C. – Today, U.S. Sen. Jim Inhofe (R-Okla.) expressed his concern with the passage of S. 3217, American Financial Stability Act of 2010.  Under this legislation, a Consumer Financial Protection Bureau (CFPB) will be created inside the Federal Reserve that would give authority to regulate both financial organizations and any companies offering a credit product including auto-dealers, retailers, orthodontists, and manufacturers. 

“I’m greatly disappointed by the financial regulatory reform bill the Senate voted to approve,” said Inhofe. “This bill was supposed to be about writing sensible rules regarding Wall Street practices that helped us get into a financial mess, but instead Democrats used this bill as an opportunity to expand the federal government’s reach into areas of the economy that had nothing to do with the financial crisis. 

Inhofe continued, “This bill is about new bailouts for Wall Street and new burdens for Main Street.  For example, Goldman Sachs and Citigroup are strong supporters of this bill.  In fact, Goldman Sachs CEO Lloyd Blankfein said the biggest beneficiary of this reform effort will be ‘Wall Street itself.’ At the same time, over the four weeks this bill has been on the Senate floor many Oklahomans including small community bankers, car dealers and even florists have visited my office to express their great concerns and opposition to this bill.  

“There’s a clear disconnect here.  Why are car dealers and credit unions terrified of what’s supposed to be a Wall Street reform bill? The answer is simple: Democrats have yet again used a crisis to expand the federal government’s reach into the private sphere. They did it in this bill through the creation of an extremely powerful new ‘consumer protection’ bureaucracy.   

“I agree that we needed rewrite and update many of our financial regulations in the wake of the financial crisis and all the bailouts.  But a bill that allows the Executive Branch to borrow billions to pay off creditors of a failed firm while saddling Oklahoma small businesses - who had nothing to do with the financial crisis – with new regulations is not the right answer.”