Wall Street reform bill passes the Senate

The United States Senate has officially passed the Wall Street reform bill. The Senate first voted to stop debate and bring it to a vote. 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 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

Before the final vote on the bill, the United States Senate had to quash discussion. As outlined by CNN Money, the vote to stop debate passed 60 to 38. Soon afterwards, the final vote began. A financial reform bill has been within the works since spring 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 effects the bill has

Wall Street is the bills’ prime target. 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. The bill may also create an advisory board that will step in and choose what will happen to enormous firms on the edge of failure. A consumer financial protection agency that oversees consumer loans like payday loans, mortgage loans and credit cards will also be created. The new Consumer Financial Protection Bureau could be part of the Federal Reserve.

The critics weigh in

The Wall Street Journal asked some economists whether they would have voted for it, and only half said they would. A slight majority believed it will have only minor effects. House Minority Leader John Boehner, R – OH, has already called for its repeal, and Senate Minority Leader Mitch McConnell, R-KY, says it will “stifle growth and kill jobs.” The bill also grants a minor oversight of the Federal Reserve, audits allowed only after emergency loans are made, excluding monetary policy, and do not address Fannie Mae and Freddie Mac at all.

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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