Titus Supports Commission to Examine Causes of Financial Crisis

Press Release

Congresswoman Dina Titus of Nevada's Third District voted today for the creation of an outside commission that will investigate the causes of the current financial and economic crisis in the country. The Fraud Enforcement and Recovery Act passed the House with a strong bipartisan vote of 367 to 59. As a result of this financial crisis, Nevada's housing market has been hit hard, leaving tens of thousands of Nevada's families facing foreclosure as the value of their homes plummeted.

"Putting an end to this financial crisis that has left so many Nevadans at risk of losing their home is one of my top priorities," Congresswoman Titus said. "With more than 60 percent of Nevada homes underwater, it is critical that we understand what caused a crisis of such magnitude and how we can prevent a similar crisis from happening in the future. We must restore accountability and ensure that Nevada's families will not be left reeling again due to the irresponsible actions of Wall Street."

The Fraud Enforcement and Recovery Act establishes a 10-member congressionally appointed commission to investigate the financial crisis. It is similar to the Pecora Commission that was created to investigate the causes of the stock market crash of 1929. That investigation uncovered fraudulent and unscrupulous practices on Wall Street that undermined the financial system and led to important changes in the nation's regulatory structure.

The bill also includes $75 million for the FBI to nearly double the size of its mortgage and financial fraud program by hiring 190 addition special agents and more than 200 professional staff and analysts. With this funding, the FBI can double its mortgage fraud task force nationwide to target fraud in the hardest hit areas of the country such as Nevada.

This legislation is the latest in a series of consumer protection reforms recently passed by the House. Last week, the House passed the Credit Cardholders' Bill of Rights, which includes tough new protections for consumers facing excessive credit card fees and interest rates that credit card companies can revise at will. Later this week, the House is expected to vote on the Mortgage Reform and Anti-Predatory Lending Act to curb abusive and predatory lending.

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