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FOR IMMEDIATE RELEASE:

Iowans Send Message to Members of Congress: Main Street Has Its Eye on Wall Street Reform

Des Moines, IA June 23, 2010 -- As the conference committee proceeds in the final stages of writing the financial regulatory reform bill, Iowans joined community leaders in 25 cities to deliver petitions today from thousands of constituents to members of Congress, urging them to pass historic Wall Street reform legislation now. Petition text available here. Petitions were delivered in Des Moines to the offices of Senators Harkin and Grassley and Representative Boswell.

Betty Ahrens, Executive Director of the Iowa Citizen Action Network: "Today, members of Congress will get a message directly from Iowans - we're watching what's happening with Wall Street reform and we need you to stand up for Main Street. We want this legislation finished swiftly, but it must actually hold big banks accountable for their reckless behavior. Big Banks might have deep pockets, but we have the power of every person who signed these petitions all across the country. Congress must keep us in mind as they complete work on this bill."

In addition to the more than one thousand individual Iowans who signed the petitions, organizations representing housing advocates, consumers, and small business joined together to author a letter to Senator Harkin and Representative Boswell as members of the conference committee hammering out final details of the bill this week. Representatives of these groups delivered the letter (key points listed below) along with the petitions urging passage of strong Wall Street Reform.

Matthew Covington, Community Organizer for Iowa Citizens for Community Improvement: "The top financial regulators in the country failed to keep a watchful eye on the financial system, and because of that, the big banks were able to unleash their greed on everyday folks. Our elected officials have to advocate for and ensure strong consumer protections that will put the interests of people before profits."

The letters signed by River Cities Development Services; Scott County Housing Council; Iowa Federation of Labor, AFL-CIO; Iowa Citizen Action Network; Iowa Citizens for Community Improvement; and Iowa Main Street Alliance were delivered to Representative Boswell and Senator Harkin today that asked them to champion the following shared priorities in the conference committee:

1. Protect Consumers. Congress must create an effective Consumer Financial Protection Bureau (CFPB) with enough tools to really get the job done. Auto dealers want a special exemption from oversight; payday lenders want a special say in how the rules are written. Congress should reject both of these unfair provisions. And, Congress should make sure the CFBP is led by a single director and has a guaranteed source of adequate funding.
2. End the Casino Economy. Derivatives are a $600 trillion unregulated ticking time bomb at the center of our economy. We need to fix them or we'll face another meltdown. The fix is to bring them into the light with clearing and exchange trading and separate them from regular banking with Senate Section 716.
3. Shine Light on ALL the Players. This includes the $600 trillion "derivatives" market (see above), private equity, hedge funds, credit ratings agencies, and the Federal Reserve Board. All these pieces of the puzzle must be brought into the light and reformed to serve the real economy.
4. Safeguard the System. A strong "Volcker Rule" with the Merkley Levin language will protect regular Americans from Wall Street's mistakes: Congress must include it in the final bill. Congress should limit interconnectedness and make sure that banks and speculators-not taxpayers-pay the costs when financial institutions fail.
5. Protect Investors. Right now, your financial advisor isn't bound by law to put your interests first when advising you. The House bill would make this common sense change and Congress must include this provision.
6. Provide Help to Unemployed Homeowners. Unemployment is now the most common trigger of mortgage default. Providing low-cost bridge loans to unemployed homeowners will help stabilize the economy as a whole and help families weather the economic storm and return to successful homeownership once re-employed.

Betty Ahrens: "It is time to rein in the abuses, stop the big banks from gambling with our money, and put families and main street business first. The bill coming out of conference must put the police back on the Wall Street beat, ensure transparency and head off the kinds of dirty, double dealings we have seen from the likes of Goldman Sachs. We are counting on all our Iowa members of Congress to show the people of Iowa they choose them over the lobbyists and the Wall Street bankers."

Americans for Financial Reform is a coalition of over 200 national, state and local consumer, labor, retiree, investor, community, business, and civil rights organizations who are campaigning for real reform in our nation's financial system.

Contact:

Betty Ahrens
319-321-3646

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