Robin's Story & Andrew's Story: A New Bureau to Protect Consumers

Posted by White House

On July 21, 2010 President signed the Wall Street Reform bill into law. One part of that law created the new Consumer Financial Protection Bureau to protect and empower American consumers with the strongest consumer protections in history.

Elizabeth Warren, who is leading efforts to get the Bureau up and running, recently announced their new website and today, she'd like you to meet Robin Fox, a 7th grade science teacher from Rome, GA, and Andrew Giordano, a retired Vietnam veteran from Locust Point, MD -- a couple of Americans whose stories illustrate some of the unfair practices people have encountered and how the Consumer Financial Protection Bureau will work to prevent it from happening again.

Watch their stories:

Robin's Story: Arbitrary Rate Increases on Credit Cards

The Consumer Financial Protection Bureau will enforce the Credit CARD Act, which President Obama signed in 2009 to ban credit card issuers from arbitrarily raising rates on existing balances and other unfair practices. The CFPB will also be responsible for updating the credit card rules moving forward.

Andrew's Story: Unexpected Overdraft Fees

The Consumer Financial Protection Bureau will examine big banks to ensure that they are following the rules that now require banks to give consumers a real choice of whether to join overdraft protection programs for ATM and debit card transactions. The CFPB will update those rules to respond to changes in the marketplace over time.

Visit ConsumerFinance.gov to learn more about the Bureau and submit suggestions.

Intern Picks: 10 Must-See White House Videos

Posted by White House

The other day, we were given a pretty fun assignment: comb through nearly 1,500 White House videos and come up with our favorite ten.

The variety of videos the White House has published since President Obama took office is overwhelming. Along with the President’s speeches and daily press events, there are powerfully candid moments from the light-hearted to the awe-inspiring, clips that make you laugh out loud and behind the scenes material that you can't find anywhere else (for example, a look inside a Cabinet meeting).

So after careful consideration, we are excited to share the first "Intern Picks" of 10 Must-See White House Videos:

10. The President's Order for Stephen Colbert

Go behind-the-scenes with President Obama as he records his cameo appearance on "The Colbert Report." In the segment, he orders Colbert's head shaved, which was promptly executed by General Odierno during a special broadcast from Camp Victory in Baghdad.

Why it’s great: The President is faced with a lot of important decisions on a daily basis, but it’s not every day that he gives an order like this. Also, Stephen Colbert makes an addition to the White House library.

9. Inside the White House: Letters to the President

Every day, President Obama reads ten letters from Americans around the country to stay in tune with their issues and concerns. "Letters to the President" is an exclusive, behind-the-scenes look at the process of how those ten letters make it to the President's desk from among the tens of thousands of letters, faxes, and e-mails that flood the White House each day.

Why it’s great: This video provides an intimate look at one of the ways President Obama connects directly with people from around the country daily and it’s moving to see.

8. The Hovercraft

President Obama convinces New York Times reporter Sheryl Stolberg to demo a small hovercraft at Industrial Support Inc., a manufacturing services company in Buffalo, N.Y.

Why it’s great: You don’t need to be President to know that hovercrafts are fun.

7. What Wall Street Reform Means to You

A quick and simple animated explanation of how Wall Street Reform works and what the strongest consumer protections in history will mean for you and your family.

Why it’s great: This animated video makes Wall Street Reform accessible for anyone, and we like that.

6. Jimmy Fallon at the White House

Jimmy Fallon can't believe he's at the White House on the Fourth of July. Watch part of his stand-up performance from that evening.

Why it’s great: Jimmy Fallon is good, but Fallon impersonating Jerry Seinfeld, Bill Cosby, and Robin Williams, among others, during a performance on the South Lawn for the USO, is GREAT!

5. The President visits Ghana

During his visit to Ghana, President Obama reminds the people of Africa of America's commitment to partnership and friendship.

Why it’s great: The music is uplifting, the dancing is beautiful, and the President’s speech is inspiring.

4. Dunk Tank

At the annual White House Congressional picnic, guests are invited to dunk Robert Gibbs, Rahm Emanuel and Peter Orszag. The President also joined in the fun.

Why it’s great: This raw video clip of the President dunking some staff is pretty hilarious. We wonder if this is how the President practices for throwing out the first pitch...

3. The 4th of July at the White House 2010

The White House and the USO celebrate the 4th of July with service members and their families at the Independence Day celebration on the South Lawn. Performers at this year’s celebration included Brandi Carlile, Cedric the Entertainer and the rock band The Killers.

Why it’s great: This video really captures the spirit of Independence Day. It features a montage of the Fourth of July celebration on the south lawn, set to upbeat music and the President’s words on the pride that we share for our country.

2. Inside the White House: Cabinet

President Obama and Cabinet members share their perspectives on their bimonthly meetings in this exclusive, behind-the-scenes video.

Why it’s great: Check your blackberries at the door; this is a glimpse into a tradition as old as our Constitution and our country.

1. Surprise Phone Call

President Obama makes a surprise call to Gail O'Brien, a woman in Keene, NH, that is benefiting from the Affordable Care Act. Gail was previously uninsured and diagnosed with high grade non-Hodgkin's lymphoma. Thanks to the new law, Gail now has insurance through the new Pre-Existing Condition Insurance Plan that will pay for her treatments, and she is responding very well.

Why it’s great: Gail’s story reminds us of what passing health reform was all about — this video captures a wonderful moment between Gail and the President.

Getting What They Expected

Posted by White House

Last week, as special interest billionaires continued to pour secret donations of millions of dollars each into front groups supporting Republicans, we asked the obvious question: "What do they expect in return?"

Today we found out they're already drawing up the plans. Washington lobbyists are lining up cash to help Republicans in Congress repeal Wall Street reform, repeal health care reform and go back to the same policies that led to this mess. The New York Times describes the blitz of meetings between Republicans in Congress and Washington lobbyists:

But there is nothing mysterious for the lobbyists and corporate executives writing most of these checks. Mr. Camp is slated to take over the powerful, tax-writing House Ways and Means Committee if Republicans win the majority next week, transforming this low-key conservative Republican almost overnight into one of the most powerful men in town.

Across Washington, lobbyists have been working behind the scenes now for months to prepare for this possible power shift. Former aides to Mr. Camp, who now work as lobbyists, are checking in with their onetime boss, chatting with him and his aides about staff appointments he might make when he takes over the Ways and Means Committee, and what tax or health care issues will be at the top of his agenda. Other lobbyists have gone to his staff to try to get to the head of the line in presenting proposed tax changes that will benefit their clients.

“You don’t wait until Nov. 3 and say, ‘What is the plan,’ ” said Jennifer Bell, a former aide to Mr. Camp who is now a health care lobbyist. She flew to Michigan last month in part to catch up with Mr. Camp while he was in his district. “Obviously, it is the majority that sets the agenda.”

This should come as no surprise given the track record of Congressional Republicans over the past two years. Rather than listen to the American people, Congressional Republicans have repeatedly shown their loyalty to these special interests by retreating behind closed doors to strategize with their lobbyists on the most critical issues for the American people.

On Wall Street reform, Congressional Republicans didn’t listen to the millions of Americans who lost their homes and savings as a result of the financial crisis. Instead, House Republicans teamed up with Wall Street lobbyists to try to defeat the bill, and Senate Republicans leaders traveled to New York City to meet with Wall Street executives and hedge fund managers to discuss their opposition to the legislation and solicit campaign contributions. In fact, right after Senate Minority Leader Mitch McConnell got back from that trip, he announced that Senate Republicans would not support the bill providing the toughest consumer financial protections in history.

On health insurance reform, Congressional Republicans didn’t listen to the stories of Americans who cannot afford insurance or have been denied coverage for pre-existing conditions. Instead, House Republicans introduced an “alternative” bill that borrowed proposals from health insurance companies, and before any of the Senate committees had even begun working on health reform legislation, Senate Republican leaders met with health care lobbyists in an effort to “recruit stakeholders to oppose” important Democratic proposals.

And when Senate Democrats brought an important jobs bill to the floor earlier this year, their colleagues across the aisle didn’t listen to unemployed Americans looking for work. Instead, they held a strategy session with lobbyists.

In fact, Congressional Republicans have made clear that lobbyists have a seat at the table even when they are formulating their party’s broader strategy and governing vision. When House Republicans put together their “Pledge to America,” they invited a group of high-powered lobbyists and corporate insiders to help them craft their agenda at a secret, closed-door meeting – opening it up to the public only after the invitation was leaked to the press. Then, on the day House Republicans released their agenda, we learned that they had quietly put a former lobbyist for Big Oil and other special interests in charge of putting the “Pledge” together.

Weekly Address: Letting Wall Street Run Wild Again

Posted by White House

Pointing to the foreclosure crisis and the economy, the President cites passage of Wall Street Reform over the ferocious lobbying of Wall Street banks as a pivotal acheivement -- and condemns Republicans in Congress for vowing to repeal it.

10 Ways Our Economic Policies Benefit Women

Posted by White House

Today, the National Economic Council released a report on how the Obama administration’s economic policies address the challenges facing American women, both in the tough economic times we’re going through now and in the long term. From day one, the President has focused on laying the foundation for economic growth that creates good jobs for all Americans -- many of these policies have been particularly important for women.

Here are 10 ways the Administration’s policies benefit women:

1. The Lilly Ledbetter Fair Pay Act, the first bill the President signed, ensures fair treatment in the workplace.

2. The Paycheck Fairness Act builds on the Ledbetter Act to ensure equal pay for an equal day’s work. President Obama strongly supports the Act and has urged the Senate to act swiftly so that he can sign it into law.

3. SBA Recovery Act loans make it easier for women to grow their businesses and create jobs. More than 12,000 SBA Recovery Act loans have driven $3 billion in loans to women small business owners.

4. Wall Street reform helps women make smart financial choices by empowering women through financial education and financial literacy. This legislation ends predatory practices, simplifies credit card bills, stops hidden fees and unfair rate hikes, and sets up a Consumer Financial Protection Agency to enforce the toughest financial protections in history.

5. The Affordable Care Act addresses women’s unique health care needs. Health Care reform protects women from insurance company abuses, makes coverage more affordable, and makes preventive care like mammograms, neonatal care, and newborn carefree under all new plans.

6. The Recovery Act funded workforce training programs and work-study to help community college students – most of whom are women – pay for their education through employment.

7. Earned Income Tax Credit expansion for low-wage workingwomen and mothers makes it a bit easier to be a working mom – a step that helped nearly 15 million women last year.

8. The American Opportunity Tax Credit helps women earn a college education – it expanded and increased student aid, and makes loan repayment more manageable so huge repayments don’t weigh down people.

9. The Making Work Pay Tax Credit benefited 74 million American women; average female recipients got $600 more in their pocketbooks in 2009.

10. Unemployment Insurance extensions helped 6.9 million women and their families from July 2008 to August 2010. Social Security plays a vital role for retired women who make up 58 percent of all beneficiaries, and President Obama is committed to strengthening and protecting it.

While these steps won’t make everything better all at once, they are making a very real difference for many Americans in very tough times. The report lays out the economic landscape facing women today and details the many ways the Administration is committed to making sure the government is working for all Americans and for American women in particular. View the full report here.

Improving Financial Education in America

Posted by White House

Empowering Americans to make good financial decisions for themselves and their families is necessary to building a financially stronger America. To meet this goal, we must improve Americans’ understanding of financial products and terms, expand financial access, and provide appropriate and robust consumer protection. President Obama is committed to building a country in which more families have the knowledge, skills, and financial access to make good financial choices and to establishing the consumer protections that enable and encourage them to do so.

As part of this commitment, President Obama issued an Executive Order establishing the President’s Advisory Council on Financial Capability (“Council”) and appointed a highly qualified group of men and women from the private and non-profit sectors to advise him on these critical issues. The Council, which will work at the direction of Treasury Secretary Tim Geithner, will advise the President on how to maximize the effectiveness of existing private and public sector financial education efforts and identify new approaches to increase financial capability for all Americans.

Making sure Americans have the information they need to make smart financial choices is a cornerstone of a number of Administration efforts. One of the central aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which President Obama signed in to law on July 21, 2010, is the creation of the Consumer Financial Protection Bureau, whose sole mission is to look out for American consumers and empower them with the clear and concise information they need to make the financial decisions that are best for them and their families. The Bureau will create a level playing field for all providers of consumer financial products and services, regardless of their charter or corporate form and will ensure high and uniform standards across the market. It will rein in misleading sales pitches and hidden traps, and foster competition on the basis of price and quality. In addition, it will help lead efforts to increase financial capability by establishing an Office of Financial Education.

The Treasury Department will convene the Council’s first meeting in November with the purpose of laying out its agenda and goals for the upcoming months. This is another aggressive step forward in building a stronger America. An America where working hard and playing by the rules means security for our families and hope for our future. Where firms compete based on price and quality, not tricks and traps. Where old fashion values of thrift are rewarded and consumers have the knowledge and access to make good choices for themselves and their families. And where once again America leads the world.

What You Missed: Tuesday Talk with Elizabeth Warren

Posted by White House

This week we kicked off Tuesday Talks, a weekly live video chat, with Elizabeth Warren, who is leading efforts to set up the Consumer Financial Protection Bureau (CFPB) – one of the central aspects of the Wall Street Reform and Consumer Protection Act that the President signed in July.

Check out what you missed and join us next week.

Use the links below to jump directly to a question (questions are paraphrased).

• Opening remarks
• What exactly is your role and how will the average consumer benefit from your post?
• How will Wall Street Reform affect the middle class American?
• What advice do you have for students to remain optimistic in this tough economy?
• What are your thoughts on the new charges that the banking industry has introduced to offset the regulations put in place by Wall Street Reform?
• Who will be regulated, and what penalties will be enacted for violations?
• Where should consumers turn if they have issues with a financial product?
• Is the bureau taking action to address the recent mortgage foreclosure crisis affecting homeowners?
• What is your opinion on ‘personal responsibility’ versus ‘leveling the playing field’?
• Will the bureau merely be reactive to claims of abuse, or will it be proactive in checking out the behavior of financial companies?
• How will the CFPB help consumers and how can consumers help the CFPB?
• At what point do we penalize insurance companies that make huge profits but do not provide adequate services to the consumers that they insure?

Why President Obama is Not Signing H.R. 3808

Posted by White House

Today, the White House announced that President Obama will not sign H.R. 3808, the Interstate Recognition of Notarizations Act of 2010, and will return the bill to the House of Representatives. The Interstate Recognition of Notarizations Act of 2010 was designed to remove impediments to interstate commerce. While we share this goal, we believe it is necessary to have further deliberations about the intended and unintended impact of this bill on consumer protections, including those for mortgages, before this bill can be finalized.

Notarizations are important for a large range of documents, including financial documents. As the President has made clear, consumer financial protections are incredibly important, and he has made this one of his top priorities, including signing into law the strongest consumer protections in history in the Wall Street Reform and Consumer Protection Act. That is why we need to think through the intended and unintended consequences of this bill on consumer protections, especially in light of the recent developments with mortgage processors.

The authors of this bill no doubt had the best intentions in mind when trying to remove impediments to interstate commerce. We will work with them and other leaders in Congress to explore the best ways to achieve this goal going forward.

The Congressional Republicans' Pledge: What if the Rubber Hit the Road?

Posted by White House

Last night, we got a preview of the Congressional Republican “Pledge to America.” This morning – at a small business that would likely benefit from the President’s plan to help small businesses – they unveiled the full thing. As news reports have already noted, there weren’t many new ideas in it, and the document was largely fluff obscuring a return to the same old special interest policies that caused this recession. But a close look at what the real-life implications of their “pledge” would be if enacted are nothing short of alarming:

Cut Taxes for Millionaires and Billionaires While Adding Trillions to the Deficit: We have been through this before. So let’s be clear again. Under the Obama plan, every American family will receive a tax cut up to the first $250,000 of their income. For those who make more than $250,000, this change would leave their tax rates on income above $250,000 at or below the rates that existed when President Clinton was in office and when the economy created 23 million jobs. As for the Congressional Republican plan, their pledge is to continue hold middle class tax relief hostage in order to provide an average tax cut of $100,000 to millionaires and billionaires. And the price is one we simply can’t afford: $700 billion. This tax cut would be, according to the non-partisan Congressional Budget Office, just about the worst way to jumpstart our economy and help create jobs.

Add Trillions to the Deficit: The Congressional Republican plan would add trillions to the deficit, including more than $1 trillion in additional unaffordable tax cuts over the next decade and more than $1 trillion in the subsequent decade from repealing the Affordable Care Act.

Raise Taxes for 110 Million American Families and Put Hundreds of Thousands of Jobs at Risk. As part of their pledge, Congressional Republicans want to cancel unspent Recovery Act funds and stop tens of thousands of job-creating projects, from highway construction to clean energy and environmental cleanup, putting the jobs of hundreds of thousands of Americans at risk. One key part of the remaining Recovery Act funds is the Making Work Pay tax credit. So cancelling all Recovery Act funds represents a pledge to raise taxes on over 110 million American families in every paycheck –a tax hike for the largest number of middle class Americans in history. Taxes for businesses on Main Street would go up, too. Tens of thousands of businesses across the country would see their taxes rise by $27 billion, making it harder to keep current employees and hire new ones. The Congressional Republican agenda puts the jobs of hundreds of thousands of Americans at risk, as Recovery Act funding would be pulled from tens of thousands of highway construction, clean energy, environmental clean-up, and other projects already underway in big cities and small towns across America. In addition, rolling back the Recovery Act would threaten the jobs of tens of thousands of Americans as clean energy businesses lose funding for solar plants, wind farms, battery factories and other projects across America.

Oppose Real Relief for Small Businesses: Congressional Republicans have consistently opposed the Administration’s efforts to cut taxes for small businesses. They voted against the 8 small business tax cuts the President has already signed, including tax cuts to encourage investment, job growth and health care. Following their event this morning, House Republican leaders will be voting – presumably against – another 8 small business tax cuts, including zero capital gains for key investments in small businesses. Instead of supporting these tax cuts, they’ve devised a bankrupt definition of ‘small business’ in an effort to justify unaffordable tax cuts for the rich. Let’s be clear what this proposal would do:

• It would provide hedge fund managers, lobbyists and law partners a tax cut worth tens of thousands of dollars.
• If you were one of the 25 highest paid hedge fund managers who took home $1 billion a year, this proposal could allow you to avoid paying a dime of taxes on $200 million of your income, while your secretaries and assistants continue paying taxes on all of their income.
• This proposal could require us to borrow up to a half trillion dollars over ten years to pay for tax cuts that we cannot afford and that will not primarily help the real small businesses in this country.

Put Health Insurance Companies Back In Control: Congressional Republicans have pledged to repeal the Affordable Care Act and replace it with a series of special interest proposals under the guise of reform. This is a plan that would have real consequences for the American people and small businesses. Their agenda claims to protect people with preexisting conditions, but it would repeal the Affordable Care Act’s ban on discriminating against uninsured Americans, including children, who have a preexisting condition. It would raise taxes by more than $40 billion on up to 4 million small businesses that provide health benefits to their employees. It would result in premium increases by eliminating the billions of dollars in cost savings measures, and will increase the deficit by more than $1 trillion dollars. It would mean that seniors will pay more for their prescription drugs, and their new free preventive Medicare benefits would be cut. And it would mean that millions of Americans would have to give up their new Patient’s Bill of Rights protections that take effect today.

Return to the Era of Recklessness and Irresponsibility on Wall Street: Instead of supporting the Wall Street reform bill that would stop the practice of bailing out financial companies through programs like TARP, Congressional Republicans voted against it. Now, they are pledging to permanently end it. But TARP spending authority is already set to expire on October 3rd – less than two weeks from now – and thanks to the management of Secretary Geithner and the Treasury Department, the non-partisan Congressional Budget Office expects the program to cost less than 10 percent of the $700 billion authorized. And the bank program, which was the subject of most controversy, is on track to make a substantial profit for taxpayers. The only thing it sounds like Congressional Republicans want to end is the Administration’s housing assistance program, which would mean 650,000 people will be denied a chance to receive a permanent mortgage modification that saves them an average of $500 per month.

Return to the Fiscal Policies that Turned a Record Surplus into a Record Deficit: Congressional Republicans have little credibility when it comes to dealing with our nation’s long-term fiscal challenges. After all, these are the same House Republicans who helped transform a record $236 billion surplus into a record $1.3 trillion deficit, by failing to pay for tax cuts for millionaires and billionaires, two wars and a costly expansion of Medicare. These are the same House Republicans who all voted against reinstating common sense Pay-As-You-Go rules that helped balance the budget during the Clinton Administration. And they are calling for this newfound responsibility in budgeting at the same time as they are pushing to add trillions to future deficits by repealing health reform and extending tax cuts for millionaires and billionaires. And when it comes to entitlements, let’s remember what their solution was when they were in charge: privatize Social Security and turn Medicare into a voucher program. And while some House Republican leaders are trying to distance themselves from their previous position in favor of privatization, others are continuing to push these same radical plans.

Return to Failed Budgets of the Past: After years of fiscal irresponsibility, Congressional Republicans are now pledging to stop their spending spree. But what they’ve proposed would return us to the same failed Bush policies that got us into this mess. Their plan would result in dramatic cuts in basic government services, including:

• Head Start would have to slash 200,000 children from its rolls.
• 110,000 fewer children from working families would receive child care subsidies.
• The FBI would cut 2,700 agents.
• Federal prisons would cut 3,800 correctional officers.
• The Federal government could detain 12,000 fewer people because of their immigration status at any one time.
• NASA would have to severely cut back its operations—cuts that would require the agency to abandon the international space station, immediately shut down the shuttle program, and eliminate aeronautics and cross-cutting space technology programs

Republicans in Congress Push to End Consumer Protections, Let Wall Street Run Loose

Posted by White House

Yesterday afternoon, Senator Richard Shelby laid out very clearly what Congressional Republicans consider to be one of their major priorities – rolling back legislation that will provide more security and stability to middle class families, and more accountability to Wall Street. He joins the Republican Leader in the House who promised to try to repeal Wall Street Reform in July.

Senator Shelby wants to go back to a time when there was no such thing as a Consumer Financial Protection Bureau and when consumers were left without a voice at the table. This is an agency whose mission is to look out for American consumers and empower them with the clear and concise information they need to make the financial decisions that are best for them. Its existence is enormously important, because one cause of the financial crisis and the Lost Decade for the middle class was the unscrupulous practices of credit card companies and mortgage lenders, who reaped billions at the expense of consumers from hidden fees and penalties.

That's why the President fought so hard for the new CFPB and new rules to outlaw the tricks and traps that have punished the American people. That hard-won victory came over the fierce opposition of Wall Street and the financial industry. But now the man who would be chair of the Senate Banking Committee says that if Republicans win control of the Senate, he will work to gut these new consumer protections.

We hope Senator Shelby is prepared to explain why he feels that way to the millions of Americans who have been misled with pages and pages of fine print on applications for credit cards, mortgages or student loans, and now find themselves in untenable financial situations.

It’s important to understand that when Congressional Republicans talk about re-opening this legislation, they’re talking about standing up for the interests of big banks and their lobbyists and leaving middle class families to fend for themselves.

The Wall Street reform legislation is a clear victory for the American people. It will bring greater economic security to families and businesses across our country by enacting the toughest financial reforms since the ones created in the aftermath of the Great Depression, and by making Wall Street more accountable. And yet Senator Shelby wants to get rid of the progress we made and go back to a system that helped cause the financial crisis.

It’s become very clear that Congressional Republicans do not have any viable solutions to fix our nation’s problems. And the solutions they do offer, like repealing Wall Street reform legislation, will do absolutely nothing to grow our economy, put people back to work and strengthen America’s middle class. Instead, they would take us back to the same exact failed economic policies that created the mess we’re in: cutting rules for the special interests and big corporations and cutting the middle class loose.

The President Appoints Elizabeth Warren to Lead a "Watchdog for the American Consumer"

Posted by White House

The President began his remarks today in the Rose Garden laying out the motivation for what was to come:

Before we begin I just want to mention a report that was released by the Census Bureau yesterday about what happened to wages during the last decade. It revealed that between 2001 and 2009, the incomes of middle-class families fell by almost 5 percent.

The fact that the middle class has been chipped away at is well known, and obviously is not easily reversed. The economic crisis of the past two years has been devastating in itself, but was all the more tragic because so many middle class families had been pushed to the brink even beforehand. That's why the President was again tenacious in demanding that "the leaders of the other party to stop holding middle-class tax cuts hostage and extend this relief to families immediately." As the President has been explaining all week, Republicans in Congress have been refusing to allow an extension of middle class tax cuts unless there's also an additional tax cut for the wealthiest 2 percent of Americans -- an average of $100,000 for everybody making a million dollars or more per year.

But the news of the day was the announcement that Elizabeth Warren would lead the Consumer Financial Protection Bureau -- one of the central features of Wall Street Reform as explained in our animated video -- in getting it off the ground:

She’s a native of Oklahoma. She’s a janitor’s daughter who has become one of the country’s fiercest advocates for the middle class. She has seen financial struggles and foreclosures affect her own family.

Long before this crisis hit, she had written eloquently, passionately, forcefully, about the growing financial pressures on working families and the need to put in place stronger consumer protections. And three years ago she came up with an idea for a new independent agency that would have one simple overriding mission: standing up for consumers and middle-class families.

The President touched on some of issues the bureau will focus on:

Never again will folks be confused or misled by the pages of barely understandable fine print that you find in agreements for credit cards or mortgages or student loans. The bureau is going to crack down on the abusive practices of unscrupulous mortgage lenders. It will reinforce the new credit card law that we passed, banning unfair rate hikes and ensure that folks aren’t unwittingly caught by overdraft fees when they sign up for a checking account. It will give students who take out college loans clear information and make sure that lenders don’t game the system. And it will ensure that every American receives a free credit score if they are denied a loan or insurance because of that score.

Basically, the Consumer Financial Protection Bureau will be a watchdog for the American consumer, charged with enforcing the toughest financial protections in history.

Your Credit Card Bill of Rights Now in Full Effect

Posted by White House

Today, the last reform provisions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act – also known as the Credit Card Bill of Rights – took effect. The CARD Act of 2009 marked a turning point for American consumers, putting an end to the days of unfair rate hikes and hidden fees.The President released the following statement on the CARD Act implementation:

Last year, I signed the Credit Card Accountability, Responsibility and Disclosure Act into law to put a stop to deceptive credit card practices and hold credit card companies accountable to their customers. Yesterday, the final reform provisions of the CARD Act took effect. As of today, consumers will be protected against unreasonable fees and penalties for late payments, as well as unfair practices involving gift cards. This law will also make the terms of credit cards more understandable and puts a stop to hidden over-the-limit fees and other practices designed to trap consumers. It restricts rate increases that apply retroactively to old balances. And the CARD Act prevents companies from increasing rates within the first year an account is opened.

In addition, the Wall Street Reform and Consumer Protection Act I signed into law last month will empower a new Consumer Financial Protection Bureau with just one job: looking out for consumers in our financial system. This includes making sure that credit card reforms are implemented forcefully and that big banks and lenders are living up to their responsibilities under the law. And in the wake of a terrible recession, these reforms and this independent consumer watchdog will not only protect consumers, they’ll strengthen our economy as a whole, leveling the playing field for responsible lenders and ensuring that families and small business owners are better able to make financial decisions that work for them.

Wall Street Reform & LinkedIn

Posted by White House

You know what will make you look important to all your connections on LinkedIn? Being connected to the White House.

OK, maybe not, but today we have a good example of why it’s still worthwhile. Earlier this week we posted a link to our animated explainer video on Wall Street Reform and asked what questions people had about it. Our group of 57,109 people has spurred a lot of great, involved discussions on issues like health care reform since we started up last year, and we got a lot of good questions this time too. Today Jen Psaki, our Deputy Communications Director (and one of our most prolific bloggers on this topic) stopped by to address some of the most common themes we saw in the discussion.

See all of her answers below – get connected to us to get in on the discussion next time, act fast and you could be lucky member number 57,110:

Answers to your questions on Wall Street Reform

Last week we asked for your questions on the recently-passed Wall Street Reform legislation. As usual, we’ve seen an interesting and insightful discussion here at LinkedIn, and we’re always grateful to get another snapshot of what the American people are thinking. We’ve looked through everything and I’ve posted responses to some of the key themes we saw from the conversation: http://linkd.in/cGHUE2

Nancy Brady: Who is The Bureau for Consumer Financial Protections responsible to?

The good news is that the Consumer Financial Protection Bureau (CFPB) is responsible to the American people. For far too long, the interests of consumers were represented by too many agencies and the purpose of the consumer bureau is to have one agency that stands up for consumers whether it is on mortgage contracts or overdraft fees, credit cards or the availability of simple financial information they need to make the best decisions for themselves and their families. The CFPB will be housed in the Federal Reserve, but it will have an independent director, an independent budget and independent rule-writing and enforcement authority.

Cherie Anderson: Why are we reforming Wall Street? They didn't cause the crisis.

Thanks Cherie. You are correct that all of Wall Street didn’t cause the crisis, but the irresponsible and reckless behavior of a few did contribute to the worst economic downturn since the Great Depression. The problem was Wall Street was not held accountable, large markets like the $600 trillion derivates industry grew and were left unregulated, and unfair and abusive practices in mortgages and other credit markets were left unchecked. The status quo was no longer sustainable.

We are working with the financial sector, including many businesses on Wall Street, to implement the financial reform legislation. The truth is putting new rules of the road in place is not only good for American families, it is also good for responsible businesses.

LaTisha Robinson: What is being defined here looks good. Although, as many people are saying, when does it really "trickle down" and help us?

This is one of the most important questions. There are many ways that this bill will help you LaTisha, and many Americans like you.

Here are a few examples:

Free Credit Scores: Far too many Americans are left scratching their heads when they are rejected for a loan or given a rate that is higher than they expected. Consumers will have a right to get a free credit score if they are turned down for credit or charged a significantly higher price than most other consumers because of their credit scores.

Unfair Mortgage Practices: As a result of the housing bubble, far too many Americans fell into loans that they could not afford. The Financial Reform bill provides strong, sensible protections for mortgages. It restricts a number of the unfair practices that fueled the housing bubble, including broker financial incentives to place borrowers in worse loans than they qualify for, prepayment penalties and lender pressure on appraisers. Lenders will not be able to make mortgages they know families cannot afford. The Consumer Financial Protection Bureau will also take steps to combine and simplify two overlapping Federal mortgage forms, and lessen the opportunity for brokers to use complicated forms to give borrowers loans they don’t need or enter into loans they can’t afford.

Overdraft Fees: The new CFPB will also enforce rules that give consumers a real choice of whether to join expensive overdraft programs. It will protect people like Andrew Giordano, a retired Vietnam veteran from Maryland who the President met last year. Andrew was saddled with hundreds of dollars in overdraft fees on his veteran’s account because his bank had automatically enrolled him in “overdraft” protection that he never asked for. The new CFPB will enforce new rules on overdraft programs to make sure that consumers like Andrew don’t get hit with these hidden fees.

John Nolan: Who "by name" are the people that will be controlling the Bureau?

The President has not made a decision yet about who will head the new Consumer Financial Protection Bureau, but there are a number of strong consumer advocates under consideration.
And in the mean time, we are doing everything possible to put as many important pieces of the bill in place as quickly as possible.

Mick Dalrymple: I have heard about limits on debit card interchange fees in the legislation. Does this include credit card fees?

This bill does impact debit cards. Merchants often pass these fees on to consumers and thanks to this law the fees will be limited to reasonable levels and merchants will be allowed to offer discounts for paying with debit cards rather than credit cards, since credit cards cost merchants more to process.

Wall Street Reform & the African American Community

Posted by White House

[UPDATE: This event has now concluded.]

For those who have watched our animated video explainer on Wall Street Reform, there’s probably no question that there are benefits in there for every American as a taxpayer, a citizen, and a consumer.

That's true when it comes to the new Consumer Financial Protection Bureau passed as part of the bill as well, but there are communities for which that will have a particularly big impact. Throughout the debate in Congress, for example, we discussed how military families and our troops were often targets for shady lending practices and would get new protections under reform.

Today we’re going to take 45 minutes to focus on how Wall Street Reform will affect the African American community, which has long seen more than its share of the kinds of practices the Consumer Financial Protection Bureau will put to an end.

Ceci Rouse, who sits on the Council of Economic Advisors, will take questions from representatives Black Enterprise, theGrio, and Jack & Jill Politics – all of whom have been collecting questions from their readers – at 1:00 EDT this afternoon. And, as usual, we’ll be tossing a few live questions into the mix.

• Watch it at WhiteHouse.gov/live.
• Watch and join the discussion at Facebook.

Democratic and Republican Economists Agree: Intervention Was Imperative to Avert Depression

Posted by White House

The New York Times ran a compelling piece today on a report written by Alan Blinder and Mark Zandi which found that the policy response to the economic downturn was “highly effective” and that without the fiscal stimulus and the financial measures the Administration and the Federal Reserve took last year there would be 8.5 million fewer jobs.

With the hard-fought passage of Wall Street Reform last week, the President ensured that Wall Street will be held accountable, and that the American taxpayer will never again be on the hook for their actions. As the President had said repeatedly, he was just as angry with having to take steps to shore up our financial system as all Americans were. But when the President came into office, the economy was falling off a cliff, and this report demonstrates just how deep and disastrous the valley below truly was had he not done everything possible to pull it back. The report particularly emphasizes the effectiveness of financial stability measures including the bank stress tests, the actions of the Fed and the TARP program and it highlights the potential cost to the taxpayers had policy makers not acted at all.

• Read the full story.

The depth of the crisis required decisive and historic action. While the steps we took were not always politically popular the results become more indisputable each day. We went from losing 3.7 million jobs in the first six months of 2009 to gaining more than 600,000 jobs in the first six months of this year, and as this report demonstrates, it could have been much, much worse.

But the President needs no reminder that there is far more work to be done. That’s why he was in Edison, New Jersey this afternoon meeting with local small business owners about the importance of lending assistance for small businesses. The Senate is expected to move forward in the coming days on a vote on the small business bill that strengthen the capacity of small businesses to create jobs and lead economic recovery. The legislation includes several key Administration initiatives – including the Small Business Lending Fund (SBLF), the State Small Business Credit Initiative (SSBCI), extension and expansion of key SBA loan programs, and small business tax cuts including zero capital gains for key small business investments.

In addition, we can’t let the recovery of the financial sector distract from what led to this crisis which is why we are focused on protecting consumers, reining in Wall Street, ending bailouts and too big to fail through the implementation of the Wall Street reform bill the President signed into law last week.

Weekly Address: Moving Forward on the Economy vs. Moving Backward

Posted by White House

Following the signing of historic Wall Street Reform legislation, the President lays out his plans to strengthen the middle class, give tax breaks to small businesses that create jobs here, invest in homegrown, clean energy, and cut taxes for working families. The President also contrasts that plan with the agenda outlined by the Republican House Leader that would return America to the policies that created this economic crisis, drastically increase the deficit, and make permanent massive tax breaks for the very wealthiest Americans.

West Wing Week: "A Sensible Mid Westerner"

Posted by White House

Thanks for checking out the West Wing Week, your guide to everything that's happening at 1600 Pennsylvania Ave. This week, walk step by step with the President as he speaks up for unemployed Americans, congratulates this year's WNBA champs, talks with astronaut John Glenn about space exploration, meets with British Prime Minister Cameron, signs the historic Wall Street Reform bill into law and much more.

Find more video, photos, and information on the events featured in this episode below:

Friday, July 16, 2010

• The President gives an update on the BP Oil Spill in the Gulf

Monday, July 19, 2010

• The President speaks up for unemployed Americans
• The President congratulates WNBA Champs

Tuesday, July 20, 2010

• The President meets with British Prime Minister Cameron

Wednesday, July 21, 2010

• The President signs Wall Street Reform and Consumer Protection Act

Thursday, July 22, 2010

• The President signs the Improper Payments Elimination Act
 

The Top 10 Things You May Not Know About the Wall Street Reform and Consumer Protection Act

Posted by White House

Here are 10 aspects of the Wall Street Reform and Consumer Protection Act you may not know about -- the online attention-deficit version.

1. Stronger protections for consumers against unfair credit card practices like rate hikes for existing credit card balances.
2. Mortgage brokers will be prohibited from making higher commissions by selling mortgages they know consumers can’t afford.
3. Free annual credit scores so people can stay on top of their finances. [Clarification: free credit scores are available if you receive worse terms on a loan because of something on your credit report, or if you are rejected.]
4. No more taxpayer-funded bailouts. If a company can’t make it, it will have to liquidate.
5. Greater input by company shareholders over how much a CEO gets paid. And companies’ compensation boards are now required to be truly independent.
6. Brokers who offer investment advice will have to act in the best interests of their customers, not their own financial interests.
7. Financial firms won't be allowed to grow so large that if one fails, it will affect the entire financial system.
8. There will be one agency whose sole job is to make sure that consumers get the protections they deserve and to set clear rules to hold banks, mortgage companies, payday lenders, and credit card lenders accountable.
9. Businesses can't be charged extra fees for debit card “swipe fees” that exceed the cost of processing transactions.
10. You can learn plenty more here at WhiteHouse,gov or at financialstability.gov
    
11. Updated: To tack on #11, here's a new animated video we've released to further explain Wall Street Reform.