May 16, 2013

Sen. Warren Joins Secretary Lew's Opposition to Derivatives Bills

Announces Intention to Fight Bills in the Senate

WASHINGTON, DC – Today, U.S. Senator Elizabeth Warren (D-MA) announced her opposition to several derivatives bills that passed through the House Financial Services Committee last week.  Warren’s concerns echo a May 6 letter sent by Treasury Secretary Lew to the House Financial Services Committee opposing the amendments on behalf of the Obama Administration.

Senator Warren released the following statement:

“Following the financial crash of 2008, Wall Street loaded up on lobbyists and poured massive resources into watering down financial reform and preserving a status quo that had led us to the brink of economic collapse.  The big banks won some battles and lost some battles during the financial regulatory debate in 2009 and 2010, but their tune never changed and their lobbying never let up.

“Wall Street’s aggressive determination paid off last week when the House Financial Services Committee reported out several bills to roll back reforms to the derivatives markets included in the Dodd-Frank Act. 

“I strongly agree with Treasury Secretary Lew’s opposition to the bills.  The Dodd-Frank Act put in place a variety of measures that work together as a system to protect consumers, hold big banks accountable, and reduce the risk of future crises.  It is dangerous for Congress to amend the derivatives provisions of the Dodd-Frank Act without at the same time taking accompanying steps to strengthen reform and maintain the law’s equilibrium.

“It has been nearly five years since the financial crash, but middle class families are still paying a heavy price for the decisions in Washington to weaken oversight rules and fire watchdogs, leaving Wall Street free to load up on the risks that led to the crash of 2008.  Now is no time to go backwards. I will do what I can in the United States Senate to stand up to those who would chip away at reform by rolling back or fighting the implementation of the Dodd-Frank Act.”