WASHINGTON, DC - Congress today approved a landmark law to strengthen oversight of Wall Street and create a powerful new Consumer Financial Protection Bureau to give American families the tools to fight unfair and abusive financial products and services.

U.S. Senator Jack Reed (D-RI), a senior member of the Banking Committee who crafted several major provisions in the bill, was among the 60 senators who voted in support of final passage. After the vote, Reed issued the following statement:

"This new law is tough but fair and long overdue. It sets clear rules that will help us build a stronger, more stable economy while preventing future systemic failures.

"In addition to enhancing oversight and transparency of Wall Street, this law strengthens regulation over credit cards, mortgages, and other financial products that affect every American. Consumers shouldn't be exposed to unsafe food or drugs, and they shouldn't be exposed to toxic and unsafe financial products either.

"These comprehensive reforms will protect consumers and taxpayers from abuses by credit card companies, finance companies, and payday lenders. And it will ensure that traders and executives, not taxpayers, pay for Wall Street's mistakes.

"It includes a tough, new consumer watchdog that can keep up with new scams and predatory products on a real-time basis to prevent American families from being treated unfairly.

"While the previous Administration loosened and rolled back several important financial regulations, this bill closes major loopholes and broadens the SEC's authority over hedge funds and credit rating agencies. Americans are rightfully upset that their tax dollars were used to save the financial system from total collapse in 2008. The good news is that this law ends the Bush-era policy of bailing out big banks and not holding Wall Street accountable."

"Now that the legislation is passed, Congress must provide the resources and attention to ensure regulators do their job and exercise meaningful oversight of Wall Street and financial institutions.

"I will continue working hard on this issue and hold hearings this fall to ensure regulators are effectively implementing this law."

The Dodd-Frank Wall Street Reform and Consumer Protection Act includes several key provisions written by Senator Reed. In particular, the new law will:

Create a new Office of Financial Research (OFR) that will help provide early warning to regulators about financial problems, and allow regulators to act on that information and keep pace with new products being engineered on Wall Street.

Strengthen consumer protections by creating a strong Consumer Financial Protection Bureau (CFPB), and locates within it an Office of Service Member Affairs created by Senator Reed that will monitor and respond to complaints from military families.

Bring accountability and transparency to the derivatives markets by overturning the law that prevented regulators from taking any action to regulate this market. It also incorporates strong new rules Senator Reed championed to ensure transparency and stability in these markets.

Close dangerous loopholes and gaps in financial oversight by requiring advisers to hedge funds and private equity funds to register with the Securities and Exchange Commission (SEC).

Hold credit rating agencies accountable by empowering the SEC and improving accountability and accuracy within the credit rating industry through a strong new liability provision that allows investors to take action when a rating agency knowingly or recklessly fails to review key information in developing a rating.

Protect investors by strengthening the SEC's ability to bring enforcement actions, addressing issues revealed by the Madoff fraud, and modernizing the SEC's ability to obtain critical information. In particular, these provisions will enhance the ability of the SEC to hire market experts, strengthen oversight of fund custodians, modernize the ability of the SEC to obtain information from the firms it oversees, and clarify and enhance SEC penalties and other authorities.

Create a national foreclosure database to give regulators an important tool to monitor and anticipate issues stemming from foreclosures and defaults in our housing markets and better pinpoint assistance to struggling homeowners.

The U.S. House of Representatives voted 237-192 to approve the Dodd-Frank bill on June 30, 2010.

Now that the bill has been approved by the Senate, it will go to President Obama to be signed into law.