American people will never again be asked to foot bill for Wall Street's mistakes - President Obama

By Vijay Kumar

YESTERDAY President Obama signed a landmark legislation putting the middle class above the special interests that for so long had a stranglehold on America's government. Before signing the 'Wall Street Reform and Consumer Protection Act', President Obama said,

++ For years, our financial sector was governed by antiquated and poorly enforced rules that allowed some to game the system and take risks that endangered the entire economy.

++ Unscrupulous lenders locked consumers into complex loans with hidden costs. Firms like AIG placed massive, risky bets with borrowed money. And while the rules left abuse and excess unchecked, they also left taxpayers on the hook if a big bank or financial institution ever failed.

++ Now, for all those Americans who are wondering what Wall Street reform means for you, here's what you can expect. If you've ever applied for a credit card, a student loan, or a mortgage, you know the feeling of signing your name to pages of barely understandable fine print. What often happens as a result is that many Americans are caught by hidden fees and penalties, or saddled with loans they can't afford.

++ If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy. And there will be new rules to make clear that no firm is somehow protected because it is “too big to fail,” so we don't have another AIG.

++ The fact is every American -– from Main Street to Wall Street –- has a stake in our financial system. Wall Street banks and firms invest the capital that makes it possible for start-ups to sell new products. They provide loans to businesses to expand and to hire. They back mortgages for families purchasing a new home. That's why we'll all stand to gain from these reforms. We all win when investors around the world have confidence in our markets.

++ And because of this law, the American people will never again be asked to foot the bill for Wall Street's mistakes.