Kanjorski Statement on Wall Street Reform Conference Committee Agreement

By THE OFFICE OF CONGRESSMAN PAUL KANJORSKI (D-11)

WASHINGTON – Today, Congressman Paul E. Kanjorski (PA-11), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, provided the following statement on the agreement reached early this morning on a Wall Street reform bill as negotiated by the House-Senate conference committee. Chairman Kanjorski participated as one of the conferees in the negotiations. The conference committee included just 16 core House conferees and 12 Senate conferees who worked to resolve the differences between the House and Senate versions of Wall Street reform bills and reach a final agreement on the historic legislation.

“Today House and Senate conferees succeeded in reaching agreement on a far-reaching Wall Street Reform bill which will fundamentally change the way that Wall Street operates. The most substantial financial services legislation created by the Congress since reforms adopted in the aftermath of the Great Depression, this bill establishes important new ground rules to govern virtually every element of our nation’s financial system. No longer will vast pools of capital lurk in the shadows, unseen by regulators. No longer will banks be allowed to behave like casinos. No longer will firms grow into such behemoths that their collapse could threaten the safety of the entire US economy. No longer will financial firms be considered ‘too big to fail.’ Finally, my amendment, in conjunction with the Volcker Rule, will prevent future bailouts and ensure that regulators have the power to rein in the financial titans whose recklessness led to the Great Recession.

“Chairmen Frank and Dodd performed heroically in shepherding this landmark legislation through a process which I hope will lead to enactment within the next week.”

On December 11, the House passed H.R. 4173, the Wall Street Reform and Consumer Protection Act, which included the Kanjorski “too big to fail” amendment. About a month later, President Obama announced his proposals to limit the size and scope of financial companies, and both Administration officials and House leaders have regularly stated that the President’s proposed Volcker rule builds upon the Kanjorski amendment to address companies that are deemed too big to fail. The Senate bill, which passed in May, includes much of the Kanjorski “too big to fail” amendment, a modified version of the Volcker rule, and many of the Kanjorski-authored provisions to better protect investors, regulate rating agencies, register hedge funds, and monitor insurance markets.

On January 27, Chairman Kanjorski also sent letters to Senate Banking Committee leaders offering to provide assistance and background on the Kanjorski “too big to fail” amendment as the Senate worked on its Wall Street reform legislation. The letters were sent to Chairman Dodd and Senate Banking Committee Ranking Member Richard Shelby (R-AL), as well as Senators Bob Corker (R-TN) and Mark Warner (D-VA), two Senate Banking Committee members charged with reaching a bipartisan agreement on systemic risk issues, including addressing “too big to fail” matters. Click here to view the letter. For further details about the Kanjorski “too big to fail” amendment, click here to view a press release from when Chairman Kanjorski first revealed his plan in November.

The House and Senate will both have to pass the revised bill before it goes to the President for his signature.

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