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 as some of our leading financial institutions declared that they were no longer solvent. 


Failing banks led to tightening of the credit market, which led to an economic downturn. In turn, the failing economy caused loans to be called in and lines of credit to dry up.


It was the beginning of a downward spiral that threatened to drag our nation into its worst economic crisis in decades. Congress took decisive action that broke that cycle and allowed us to step back from the edge.

 distract us from an even greater danger to our economic well-being: The idea that so-called "too big to fail" institutions can act irresponsibly and then fall back on another government bailout.  


President Obama is taking the next step toward 

. He is proposing new reforms to ensure that large banks have stronger capital and liquidity requirements. 


Our major financial institutions must have the resources they need to weather economic storms without relying on taxpayers. We cannot allow Wall Street to continue operating in a manner that risks our nation's economic well-being.


It's time to restore the integrity of our regulatory system. Overlapping authority among different federal regulatory agencies has led to a lack of accountability on the part of regulators. In other instances, newer financial instruments like hedge funds were able to find loopholes to avoid regulation altogether. 


Following the theory that an unregulated financial marketplace creates a more dynamic economy, the Bush administration gutted the enforcement power of the 


We are moving ahead with comprehensive reforms to ensure that our financial system is transparent, accountable and effective at policing Wall Street.  


We desperately need reform at the point of contact between the financial services industry and the individual consumer. Consumers must have plain-English explanations of the financial agreements they enter into so they can make informed decisions. 


Too many credit card companies have used bait-and-switch tactics, advertising a low interest rate to get the consumer to sign up, only to jack up the rates a few months later. Too many predatory lenders have made home loans to people who cannot afford to pay them back. 


The financial services industry must act responsibly, ensuring that banks and brokerage houses are properly capitalized. Federal regulators must act responsibly, in policing the financial marketplace in a manner that protects consumers while allowing the free market to thrive. And consumers must be given the information they need to make informed, responsible choices about home loans, credit cards and other financial transactions.


Things are looking up. Our economy is expected to grow by 3.3 percent in the third quarter of 2009. The first $70 billion of the Wall Street bailout funds have been paid back, yielding 


But as we step back from the brink of the deepest economic chasm we have seen since the Great Depression, we need to examine the causes of the disaster and then take action so it does not happen again.

James Oberstar, DFL, represents Minnesota's 8th District in the U.S. House of Representatives.

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Now that we have stepped back from the economic abyss, it's time to get serious about reform.

As this crisis eases, let's act to prevent the next

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