Senate passes Wall Street reform bill

The United States Senate has officially passed the Wall Street reform bill. The Senate first voted to stop discussion and finish the voting. 50 of the 51 needed votes for passing the bill were already promised, so an easy passage was expected. The bill passed 60 to 39. The bill will now go to the President’s desk. President Obama is expected to make the decision to sign or veto the bill by sometime next week.

Wall Street reform bill finally passes

The Senate first had to vote to kill discussion. According to CNN Money, the vote to stop debate passed 60 to 38. Soon afterwards, the final vote began. The financial reform legislation has been floundering for over a year, as it was introduced in 2009. The bill needed some key Senate Republicans to offer their support for it in exchange for alterations. There is nevertheless Republican opposition to the bill in both houses.

What the bill will do

The bill is largely aimed at Wall Street. Certain trading practices are affected, concerning certain securities, derivatives, and debt bundling. The Wall Street reform bill also creates mandatory middle men, so firms are more insulated from each other. An advisory and regulatory board will be created that will choose the fate of huge firms that are collapsing. The bill also creates a consumer financial protection agency, which will aim to shore up mortgage loans, credit cards, and other consumer lending such as pay day loan. The Federal Reserve will house the Consumer Financial Protection Bureau.

The critics sound off

The Wall Street Journal asked some economists whether they would have voted for it, and only half said they would. The economists the WSJ surveyed mostly believed the effects would be minimal at best. John Boehner, R – OH, the House Minority Leader has already said it should be repealed, and Senate Minority Leader Mitch McConnell, R-KY, has said the bill will “stifle growth and kill jobs .” The bill authorizes an audit of the Federal Reserve only after it makes emergency cash loans and doesn’t address Freddie Mac or Fannie Mae at all.

Find more information here

money.cnn.com/2010/07/15/news/economy/Wall_Street_reform_bill_vote/index.htm

money.cnn.com/2010/06/25/news/economy/whats_in_the_reform_bill/index.htm?postversion=2010063018

online.wsj.com/article/SB10001424052748703722804575369050948609966.html