WASHINGTON (HawaiiNewsNow) - Hawaii's two members of the US House of Representatives split their votes on a major financial reform bill that has gained passage. The 2,000-page measure, passed Wednesday, would rewrite the nation's regulatory books from Wall Street to Main Street. A senate vote is not likely until after Congress' July 4th break.
To ease Senators' concerns, Democrats altered the bill. They scrapped an effort to pay for reforms by taxing big banks and hedge funds to the tune of $19 billion. Instead, they'll get the money by ending a $700 billion federal bailout program called the Troubled Asset Relief Program, also known as TARP.
Hirono said in a statement the bill will require credit card and mortgage companies to use easy-to-understand forms. The Democrat says it also will strengthen oversight and impose new regulations to prevent future bailouts of large financial firms.
"We need to make sure that our largest banks don't make reckless decisions that threaten our economy and enrich special interests at the expense of American families and businesses. This bill will put our citizens in much stronger positions when it comes to buying a home, using their credit cards, and mapping out their long-term financial future" said Hirono.
Djou said the measure failed to address the financial meltdown's root causes. The Republican says it intrusively expands the reach of government and raises taxes on banks that will pass those costs on to consumers.
"Put simply, this bill does more, yet accomplishes nothing - it spends more, it taxes more, and it sets the stage for more Wall Street bailouts.While there were portions of the legislation that I support, such as revamping the credit rating industry to increase transparency and address any conflicts of interest, the good was buried beneath a great deal of bad" said Djou in a statement.