Senate passes Wall Street reform bill

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. 50 of the 51 needed votes for passing the bill were already promised, so an easy passage was expected. The bill passed 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

Earlier today, the United States Senate voted to stop all discussion over the Wall Street reform bill and bring it to a vote. The measure to kill debate, as outlined by CNN Money, passed 60 to 38. Final voting started soon after. Since spring 2009, a financial reform bill has been expected. The support of some Senate Republicans was needed to get the bill passed. However, the bill still has staunch Republican opposition in both houses.

What effects the bill has

The biggest target of the legislation is 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. An advisory and regulatory board could be created that will decide the fate of huge firms that are collapsing. The bill also creates a consumer financial protection agency, which will aim to shore up mortgage loans, credit cards, and other consumer lending like paydayloans. The new Consumer Financial Protection Bureau will be part of the Federal Reserve.

The critics have their say

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 will have only minor effects. The House Minority Leader John Boehner has already called for the repeal of the bill and Senate Minority Leader Mitch McConnell said it will “stifle growth and kill jobs .” The bill authorizes an audit of the Federal Reserve only after it makes emergency money and doesn’t address Freddie Mac or Fannie Mae at all.

More information accessible at these websites

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