Ten years ago, under a Republican Congress, Gramm-Leach-Bliley repealed many of the protections of Glass-Steagall. Eight years later, the American economy reaped the consequences of Gramm-Leach-Bliley deregulation. In 2008, the United States was devastated with the worst financial crisis since the Great Depression, caused in major part by deregulation allowing financial tricks like credit default swaps. “Congressman Lance has stated that we do not need more regulations. He thinks the regulatory structure in place in 2008 works just fine. The financial regulations in place in 2008 failed to prevent the worst recession since the Great Depression, so they clearly did not work, said Potosnak. “The collapse of Lehman Brothers on September 15, 2008 started a chain reaction that led to falling stock prices, companies declaring bankruptcy, families losing their homes and small businesses, and Americans across the country losing their jobs and life savings.”
In 2010, the Democratic Congress passed Financial Reform to update regulations and again protect consumers from greedy practices on Wall Street. Potosnak’s opponent, Congressman Leonard Lance, voted against financial reform in and out of committee. His duty as a member of that committee- his only committee assignment- is to regulate the banking and insurance industry. Yet, more than 60% of his campaign contributions come from special interests like the banking and insurance industries. He is putting their profits ahead of the needs of middle class families and businesses on Main Street.”
Potosnak praised the financial reform bill saying, “Congress acted to pass financial reform to make our financial markets more transparent, provide oversight on more risky investment practices, and protect American investors through the creation of the Consumer Financial Protection Agency. I support the financial reform legislation and, when I am in Congress, I will fight for further reforms to protect investors including banning credit default swaps.”
Add this page to your favorite Social Bookmarking websites
