Senate Passes Far-Reaching Financial Reform

It still has to pass the House and be reconciled, but the financial reform bill passed by the Senate is as far-reaching as anything passed since the Great Depression.  Only four Republicans voted for the bill and two Democrats opposed it.

In providing for the most profound remaking of financial regulations since the Great Depression, the legislation would create a new consumer-protection watchdog housed at the Federal Reserve to prevent abuse in mortgage, auto and credit card lending. It also would give the government power to wind down large failing financial firms and set up a council of federal overseers to police the financial landscape for risks to the global economy. Moreover, the legislation would establish oversight of the vast market in financial instruments known as derivatives, impose new restrictions on credit rating agencies and give shareholders a say in corporate affairs.

The Democrats who opposed the bill, Maria Cantwell of Washington and Ruu Feingold of Wisconsin, objected because they don’t think the bill goes far enough.

Leaders successfully courted GOP Sens. Olympia J. Snowe and Susan Collins, both of Maine, in part by including in the final bill provisions that each wanted. Sen. Charles E. Grassley (R-Iowa) also backed the bill. Equally critical was the last-minute push to win over Scott Brown (R), the Senate’s newest member.

By: Alan

Alan Colmes is the publisher of Liberaland.