WASHINGTON, DC – House Majority Leader Steny H. Hoyer (MD) released the following statement today after President Barack Obama marked the one-year anniversary of the collapse of Lehman Brothers with a speech on the need for financial regulatory reform:
“One year ago today, the collapse of Lehman Brothers precipitated a crisis that had not been seen since the days of the Great Depression. Economists across the spectrum agreed that action was necessary, and the Bush Administration and the Democratic Congress worked together to prevent more institutions from failing while protecting taxpayers. It is evident today that this bipartisan action averted an economic catastrophe. Already, financial institutions are beginning to repay TARP funds, with a return of 17% so far. As we ease out of recession, government programs are carefully winding down.
“While the signs of recovery are encouraging, we cannot forget what led us to that point in the first place. With lax rules and no oversight, companies took irresponsible risks and made unsustainable choices. We cannot allow our financial system to return to the practices that nearly ruined our economy. Oversight is necessary to protect consumers and investors, and ensure a financial industry that is both transparent and competitive. This fall, Chairman Barney Frank will hold hearings and mark-ups in the Financial Services Committee on comprehensive regulatory reform. As soon as they complete their work, I will bring this legislation to the House Floor for a vote.”