Statement by Nancy Zirkin on Senate Financial Reform Legislation

“The Leadership Conference applauds Senator Dodd’s dedication to bringing real reform to Wall Street, and for elevating the importance of civil rights protections within the new consumer protection bureau. 

Given the obvious inability of the existing financial regulatory system to adequately look out for the interests of our communities, The Leadership Conference strongly believes that the only option is to create a new regulator that will. 

It is clear that racial and ethnic discrimination ran rampant in mortgages and other types of loans in the years that led up to the financial crisis.  Countless numbers of abusive loans were made on terms that were virtually guaranteed to strip borrowers of wealth and plunge them deeper into debt. 

One part of the new bureau that we are particularly pleased with is the Office of Fair Lending and Equal Opportunity.  It is important for civil rights enforcement to be built into the formal structure, to finally make civil rights a real priority within the Federal Reserve, so the consumer bureau can coordinate with other agencies like Department of Justice and the Department of Housing and Urban Development, as well as to take the lead on fair lending education.

Though the current legislation that was announced today is a step in the right direction, it is of critical importance that the agency be fully independent and cover all types of loans. The Leadership Conference will continue to advocate for the strongest financial protections for the American people.”

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Nancy Zirkin is executive vice president of The Leadership Conference on Civil and Human Rights, a coalition charged by its diverse membership to promote and protect the rights of all persons in the United States. The Leadership Conference works toward an America as good as its ideals.