Sweeping Financial Reform Bill Passes Sen. 59 to 39
May 21, 2010
(ChattahBox)—After overcoming a Republican filibuster, Senate Democrats passed a sweeping overhaul of the nation’s financial system, imposing new curbs on Wall Street and lenders. Both Senate Majority Leader Harry Reid (D-NV) and President Obama hailed the landmark bill, as a victory over special interests and Wall Street Lobbyists. Although, the 59 to 39 vote securing passage had the support of four Republicans, the massive financial regulatory measure was opposed by Republican leaders, painted as a government takeover of the financial industry.
The massive overhaul bill will have to be reconciled with the House bill in committee. But the two bills have few differences and President Obama is projecting a final bill should be on his desk by July. Reid, said after passage of the bill that this was a win for Americans and not Wall Street.
“It’s a choice between learning from the mistakes of the past or letting it happen again,” said Reid. “For those who wanted to protect Wall Street, it didn’t work.”
And President Obama noted that the reform bill would hold big banks accountable to the taxpayers. “The recession we’re emerging from was primarily caused by a lack of responsibility and accountability from Wall Street to Washington,” Obama said. “That’s why I made passage of Wall Street reform one of my top priorities as president, so that a crisis like this does not happen again.”
According to a report in The NY Times, the financial reform bill would leave an imprint on every aspect of the financial system:
“The bill, sponsored by Sen. Chris Dodd (D-CT), seeks to curb abusive lending, particularly in the mortgage industry, and to ensure that troubled companies, no matter how big or complex, can be liquidated at no cost to taxpayers. And it would create a “financial stability oversight council” to coordinate efforts to identify risks to the financial system. It would also establish new rules on the trading of derivatives and require hedge funds and most other private equity companies to register for regulation with the Securities and Exchange Commission.”
President Obama intends to be directly involved in the crafting of the final bill, much like he was in the final days of healthcare reform.