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AFR: Senators Merkley and Levin Work to Prevent Wall Street from Betting Our Savings

Submitted by on March 10, 2010 – 12:45 pm
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Washington, DC – Americans for Financial Reform released the following statement about the Protect our Recovery through Oversight of Proprietary Trading Act (or PROP Trading Act).

Heather Booth, Executive Director, Americans for Financial Reform:  “AFR strongly supports Senator Merkley and Senator Levin’s bill to rein in the reckless speculation that has put Americans’ hard-earned savings and taxpayer dollars on the line for big Wall Street bets. The bill, like the Administration’s Volcker Rule, will ban proprietary trading and stop banks from operating hedge funds. A little more than a year after the crisis, the biggest banks are back to taking huge risks that reap them short-term profits and outrageous bonuses. Without the PROP Trading Act, commercial banks will be able to keep gambling for their own profit while also benefiting from federal deposit insurance and access to the Fed discount window – not to mention the trillions in bailout funds that saved them last year. This bill is a critical element of the reform that’s needed to prevent another financial crisis and hold the Wall Street banks accountable.”

AFL-CIO President Rich Trumka: “The AFL-CIO strongly supports the PROP Trading Act proposed by Senator Merkley and Senator Levin. It will prohibit banks from gambling on risky derivatives and hedge funds. It will help prevent banks from having to be bailed out by taxpayers. The PROP Trading Act is a necessary step toward making finance the servant of the real economy, not its master.”

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