Kelley bill to regulate unchecked financial sector clears House

March 10, 2009

OLYMPIA – Legislators in the House late on Monday voted to better regulate businesses dealing in property exchanges. Known as exchange facilitators, the measure would set better security for the exchanges and ban some practices.

Rep. Troy Kelley, D-Tacoma, introduced the legislation after seeing how unchecked financial sectors contributed to the current recession. Kelley previously worked for the Securities and Exchange Commission and saw a need for better regulation in the exchange facilitator market.

“Like some of the other programs we’ve all come to know, exchange facilitators are a good service for investors,” Kelley said. “But like credit default swaps and other programs, just trusting that everyone will behave is likely going to cost somebody in the end.”

“Whether it’s exchange facilitators or mortgage-lending, the state needs to take common-sense steps to provide families with some extra security.”

Kelley is the Vice Chair of the House Financial Institutions and Insurance Committee. As the state looks to recover from the current economic recession, Kelley believes part of the recovery effort needs to focus on making sure the financial system works for everyone.

“There isn’t one thing that led our economy to crash, but I think part of it was a lack of good government oversight,” Kelley said. “A free market is a great thing, but consumers need protections too and there is room to improve there.”

House Bill 1078 passed unanimously and now goes to the Senate for further consideration.

# # #

For more information
State Rep. Troy Kelley, (360) 786-7890
Print-quality image: www1.leg.wa.gov/documents/house/members/photos/Kelley.jpg

Staff contact - Andrew Dziedzic, (360) 786-7218

Bill information
HB 1078: http://apps.leg.wa.gov/billinfo/Summary.aspx?bill=1078&year=2009