Here's the update I received from Congressman Matheson; about the laws that will effect us all and be signed into law this month.


"July 14, 2010
Dear Ms. Wallace,

Knowing your interest in financial regulatory reform, I would like to take this opportunity to provide you with an update on recent legislative activity.

In the aftermath of the subprime mortgage crisis in 2008, we have faced the worst financial crisis since the Great Depression. Wall Street institutions deemed "too big to fail" engaged in risky lending and trading practices that spread the damage across the global financial sector. Poor oversight by federal regulators and a lack of transparency helped conceal the hazards in the system until it was too late. Now millions of jobs have been lost, businesses have failed, housing prices have fallen, and savings have been wiped out. We need to ensure that new rules are in place to prevent this from happening again.

Last December I voted in favor of the Wall Street Reform and Consumer Protection Act, which made key reforms to our financial regulatory system. In May, the Senate passed its version of financial regulatory reform. On June 30, the House passed the conference agreement reconciling the House and Senate versions of the bill, renamed the Dodd-Frank Act, with my support. The final conference agreement is expected to be signed into law by the President in July.

This landmark legislation marks the biggest reform of our financial system since the Great Depression. I believe it takes a number of important steps to inject accountability and transparency into our financial system to prevent another systemic collapse and the taxpayer bailouts that followed.

Below are some of the most significant reforms in the legislation:
o Creates a new a 10-member oversight council of financial regulators to monitor and address systemic risks to financial stability.
o Establishes a system to responsibly wind down troubled financial firms whose collapse might cause widespread economic damage at no cost to taxpayers.
o Requires the riskiest financial instruments, known as "derivatives," to be traded on exchanges and routed through clearinghouses, in a transparent, accountable way, while still protecting the ability of businesses and manufacturers to responsibly manage risk.
o Provides regulators additional oversight and authority over trading in energy and commodity futures markets to reign in the excessive speculation that has led to drastic fluctuations and spikes in oil and gas prices.
o The "Volcker Rule" - largely bars major financial firms with commercial banking operations from making speculative investments with their own funds.
o Creates a new Consumer Financial Protection Bureau within the Federal Reserve, with rulemaking and some enforcement power over banks and other financial companies.
o Requires mortgage lenders to ensure for the first time that a borrower can repay a home loan by verifying income, credit history and job status.
o Reins in egregious executive compensation and retirement plans by allowing a 'say on pay' for shareholders, requiring independent directors on compensation committees, and limiting bank executive risky pay practices that jeopardize banks' safety and soundness.
o Permanently increases level of federal deposit insurance for banks, thrifts and credit unions to $250,000.
o Audits the Federal Reserve's emergency lending programs from the financial crisis and limits the Fed's emergency lending authority.
I also worked to include language in the final package that protects Utah industrial banks, an important jobs sector in Utah. The language ensures that that the parent companies of these industrial banks, known as Industrial Loan Companies (ILCs), will not be forced to needlessly divest their ILCs. This is important, as ILCs have proven to be safe and sound institutions, even during the recent financial upheaval.
I understand there are still questions about certain provisions in this legislation, including regulation of debit card interchange fees, the scope and structure of the Consumer Financial Protection Bureau, and additional authorities for the Federal Trade Commission. I will keep these issues in mind as the bill is implemented to ensure that the outstanding concerns are taken into consideration and properly addressed.
Our system works best when everyone understands and plays by the rules, within an open and transparent regulatory framework. This legislation is an effort to begin to restore those principles that helped make America's economy strong.

Again, thank you for the opportunity to represent you and for sharing your concerns with me. If you have any questions about this or other matters of concern, please feel free to contact my office.


Sincerely,

JIM MATHESON
Member of Congress"