Senate passes Wall Street reform bill

The Wall Street reform bill has passed the United States Senate. The Senate first voted to stop discussion and finish the voting. It was expected to pass, as 50 of the required 51 votes were already pledged. The final tally was a sweeping victory for the bill, passing 60 to 39. The President’s desk is the next stop for the bill. President Obama is expected to make the decision to sign or veto the bill by sometime next week.

Wall Street reform bill finally passed

The Senate first had to vote to kill discussion. The measure to kill debate, according to CNN Money, 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 support of some Senate Republicans was needed to get the bill passed. However, the bill nevertheless has staunch Republican opposition in both houses.

What effects the bill has

The bill is largely aimed at Wall Street. Certain trading practices are affected, concerning certain securities, derivatives, and debt bundling. Certain trades are mandated to go through middle men by the Wall Street reform bill, to create better insulation between trading houses. There will even be an advisory board created that will decide how to break up mega firms on the brink of collapse. The bill also creates a consumer financial protection agency, which will aim to shore up mortgage loans, credit cards, and other consumer lending like paycheck loans. The Federal Reserve will house the Consumer Financial Protection Bureau.

The critics sound off

A survey of economists was done by the Wall Street Journal, asking whether they would vote for the bill, and only half said they would. A slight majority believed it can have only minor effects. John Boehner, R – OH, the House Minority Leader has already said it should be repealed, and Senate Minority Leader Mitch McConnell, R-KY, has said the bill will “stifle growth and kill jobs .”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 also grants a minor oversight of the Federal Reserve, audits allowed only after emergency cash loans are made, excluding monetary policy, and don’t address Fannie Mae and Freddie Mac at all.

Citations

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