Who’s going to bail out Hoosiers?
In September 2008, Lehman Brothers collapsed in New York, sending shock waves throughout the country – including Indiana. More than a year later, the greed, recklessness and lack of oversight that pushed our economy to the brink of a second Great Depression continue unabated, causing hardship for many families in Indiana.
Hoosiers have been hit hard by the economic collapse with rising unemployment and home foreclosures. If the trend continues, the state will face an estimated 170,829 foreclosures between 2009 and 2012, resulting in a staggering $6 billion in lost home equity.
Meanwhile, Wall Street is back to business as usual, on track to give away billions in holiday bonuses. This is unconscionable after taxpayers bailed out the banks to rescue the economy and get money flowing to Main Street again.
Not only are the big banks profiting at the expense of taxpayers who bailed them out, but the finance industry has also spent more than $42 million in campaign contributions – and millions more on lobbying – to block reform.
Its biggest target is the proposed Consumer Financial Protection Agency, which would police products such as mortgages and credit cards to ensure they are fair and safe.
Hoosiers need an agency focused solely on ensuring the safety of financial products, just as we have an agency to ensure that toys and toasters are safe.
Predatory financial practices don’t just hurt individuals and families; the current crisis shows that they destabilize the entire economy.
The Consumer Financial Protection Agency would encourage safer financial products and reduce federal regulatory layers. It would mean that banks would have to provide value to consumers, not tricks and traps.
The time is now for Congress to create a Consumer Financial Protection Agency that will provide strong federal rules but also allow states like Indiana to do more to protect their residents if they want.
In his key role as a member of the Senate Banking Committee, we urge Sen. Evan Bayh to support a strong Consumer Financial Protection Agency and put Hoosiers before the big banks.
