Senator Christopher Dodd (D- CT) is urging support for his new financial reform bill, which he believes will restore economic stability to the country. Joined by state business leaders in Hartford today, he said the 1400 page legislation would help avoid another economic “catastrophe.” The provisions include creating a new government agency for consumer protection. Dodd said, “ …get yourself into a financial problem where do you go?” The proposed independent agency will ensure Americans aren’t taken advantage of when they make purchases. “No one is guaranteeing you success but you shouldn’t be taken to the cleaners,” he said.
The bill would also prevent taxpayers from bailing out banks and large companies. He called the bailout process a painful direction for the country to go in, and under the proposal bankruptcy would be the assumption. The proposals would include safe ways for failed firms to liquidate and it would also impose rigorous requirements on giant institutions. The Senator’s bill ultimately would make it possible to break up firms that pose a risk to the nation.
In addition, the legislation calls for a system in place to look to the horizon, and identify any economic problems that may be looming. This would include looking at international markets and taking steps to make sure foreign economic problems don’t become ours.
Dodd plans to begin a mark-up on the bill as early as Monday.