May 27, 2010
Deputy Secretary Neal Wolin
Remarks before the Financial Industry Regulatory Authority's
As Prepared for Delivery
Thanks very much for that kind introduction. It's a pleasure to be here this
Just under a year ago, in the wake of the worst financial crisis since the Great
Depression, President Obama put forward a comprehensive, detailed proposal to
reform financial regulation.
The proposal was designed to address the key causes of the crisis; to lay the
foundation for a safer, more stable financial system; and to make sure that the
financial system works for American families and small businesses, not just for the
largest financial firms.
Last December, under the leadership of Chairman Frank, the House passed a
strong bill, substantially consistent with the President's plan. And last week, under
the leadership of Chairman Dodd, despite formidable procedural obstacles, the
Senate passed its own bill – also strong, and also substantially consistent with what
the President put forward.
There is plenty of work left to do. The House and Senate bills, while both strong
and broadly consistent, have their differences. Those differences will have to be
reconciled in conference in the coming weeks.
But while there may be uncertainty about the ultimate fate or form of one particular
provision or another, the mystery is for the most part gone. The parameters of the
ultimate financial reform bill are largely set.
So I'd like to start by walking through, briefly, some of the key elements of the
House and Senate bills – those places where it is now clear, I think, what the final
financial reform bill will accomplish.
When the President signs a financial reform bill, it will put an end the corrosive,
costly problem of "Too Big to Fail." Under both the House and Senate bills, the
federal government will get the tools to shut down large, failing financial firms in an
orderly way – without putting the rest of the financ