Bank, Wall Street Refom Bill Passes House

December 11, 2009

(ChattahBox)—A massive financial regulatory bill cleared the House on Friday, which would provide much needed reforms and grant federal regulators more power to deal with the financial sector. The groundbreaking bill, pushed by President Obama after the economic collapse last fall, passed with a vote of 223-202. The Consumer Financial Protection Agency survived the bill, which would regulate consumer financial products, such as credit cards and mortgages. The reforms also require banks and Wall Street firms to contribute up to $150 billion into an emergency fund, in the event a firm fails.

Rep. Barney Frank, D-Mass., chairman of the House Financial Committee hailed the reform bill, which would no longer support federal bailouts of firms. “The bailouts of AIG and Bear Stearns would be not possible — made illegal — under this bill. If a company fails, it’ll be put to death,” said Frank.

A measure to help bankrupt consumers failed, which would have granted greater powers to bankruptcy judges to step in and lower balances on existing mortgages to help homeowners avoid foreclosure. Many conservative Democrats voted against the bankruptcy measure.

The reform bill would order the Government Accountability Office to audit the Fed and force forms to trade many derivatives through clearinghouses, to provide better accountability, regarding the true value of the financial instruments.

Federal regulators would also have more power to step in and break up firms that have become too large; thereby ending the “practice of “too big to fail.”

Obama praised the legislation today. Treasury Secretary Timothy Geithner said in a statement: “The president set forth clear objectives and principles for reform that were endorsed by Congressional leaders. House passage of this bill moves us an important step closer to meeting the president’s objectives for reform.”

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2 Responses to “Bank, Wall Street Refom Bill Passes House”

  1. About bill friday, house passes wall street reform bill, house passes sweeping financial | Find me About on December 11th, 2009 5:50 pm

    […] (ChattahBox)—A massive financial regulatory bill cleared the House on Friday, which would provide much needed reforms and grant federal regulators more power to deal with the financial sector. The groundbreaking bill, pushed by President Obama after …Read Original Story: Bank, Wall Street Refom Bill Passes House – ChattahBox […]

  2. Obama: We Must Learn From Wall Street’s ‘Irresponsibility,’ Blasts GOP-Lobbyists Kill Reform ‘Pep Rally’ | ChattahBox News Blog on December 12th, 2009 11:34 am

    […] of Wall Street that caused our economic meltdown. His strong remarks came the day after the House passed a sweeping reform bill, which works to curb the risky practices of Banks and Wall Street firms and provides new […]

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