See my post THURSDAY, AUGUST 19, 2010 No Teamsters' Pension Fund Bail Out!
What does Christopher S. Murphy Member of Congress say in response to my concerns ... Nothing just the usual "robo response". Clearly democracy at it best.
October 20, 2010
Dear Mr. Chotkowski,
Thank you for contacting me about financial services issues. I appreciate your correspondence and hope that you find this response helpful.
Although we're no longer in the economic freefall the country experienced for much of 2008 and 2009, our financial system and housing market remains on precarious footing. The recent nationwide freezes in foreclosure proceedings by many of the nation's largest banks are a testament to the severe problems our economy still faces on the road to recovery. While we've taken some important steps forward in the last year toward rehabilitating our financial system, we still have a long way to go towards holding both banks and federal regulators accountable.
The Wall Street Reform and Consumer Protection Act, which became law earlier this year, included some important protections for consumers. The bill imposes limits on the debit-card transaction fees that banks charge merchants and retailers for using the system, protecting consumers from hidden fees that drive up the cost of everyday purchases. The legislation will strengthen the Federal Deposit Insurance Corporation (FDIC) – which ensures consumer bank accounts – by ensuring that the FDIC has the necessary capital to reimburse depositors when a bank fails.
The Wall Street Reform and Consumer Protection Act will also take important steps to require greater accountability from major financial institutions by requiring banks to "spin off" their risky derivatives desks into separate affiliates, so that commercial banking activities are distinct and protected from more speculative trading operations. The bill also provides regulation of the risky over-the-counter derivatives market for the first time, requiring many derivatives to be traded on exchanges and routed through clearinghouses and subject to new capital, margin, reporting, and record keeping requirements – bringing them into the daylight of regulatory scrutiny. The bill will also hold federal regulatory agencies to a higher standard as well, requiring an audit of the Federal Reserve's unprecedented emergency lending programs and disclosure of details of loans it made (and is making) to banks.
Still, we have more work to do. We have to make sure that employers and pension funds aren't unfairly depriving retirees of the benefits they spent lifetimes working for, and that insurance companies are gouging consumers when it comes to home insurance and other basic financial products. We need to rehabilitate Fannie Mae and Freddie Mac and get them off of taxpayer assistance, ensuring that are returned to financial health without an implicit government guarantee of future support. And we need to make sure that the housing market can fully stabilize, so that families can benefit from the true value of their largest asset.
We've got work to do, and I appreciate you making your voice heard. I can't do this job without your input. Thank you again for writing. In the future, please do not hesitate to call at (202) 225-4476 or contact me through my website at www.chrismurphy.house.gov, where you can sign up to receive updates through MurphMail, my electronic newsletter.
Every Best Wish,
Christopher S. Murphy
Member of Congress
