The wild unregulated excesses of Wall Street are over.  I commend the Obama Administration for coming up with a solid package of reforms that will help ensure a financial crisis of this magnitude never happens again.  No longer will banks and Wall Street executives be able to pawn off inherently dangerous financial products without adequate disclosure onto an unsuspecting public.

In addition to strengthening the regulatory authority of the Federal Reserve and the Treasury, one of the major reform proposals is the creation of the Consumer Financial Protection Agency (CFPA).  The CFPA will have the authority to ensure consumer protection regulations are written fairly and enforced vigorously.  This new Agency will reign in Wall Street’s excesses and make sure consumers are protected.  Just as the Consumer Product Safety Commission protects us from harmful products, the CFPA will protect the public from harmful financial instruments by ensuring they are regulated appropriately.

The Obama Administration-in contrast to the Bush Administration-recognizes that solving Wall Street’s excesses requires a multi-layered approach, including the strong involvement of states.  The proposed reforms specifically state that the CFPA’s strong rules would serve as a floor, not a ceiling, and would not pre-empt stronger state laws.  The Administration specifically advocates that states have the authority to adopt stricter laws for institutions of all types, regardless of charter, and to enforce federal law concurrently, regardless of charter.

That is why Assembly Bill 260 (Lieu), California’s landmark mortgage reform bill, needs to be passed by the Legislature and signed by the Governor.  AB 260 bans the worst predatory practices in the subprime loan industry and complements the Obama Administration’s reform proposals.  Working together at both the state and federal level, we will ensure that Wall Street will never again bring American’s financial system, and our economy, down to its knees.