The Wall Street reform bill has passed the United States Senate. The Senate voted to quash debate and discussion earlier today, in order to move it to a vote. It was expected to very easily pass, as 50 of the 51 needed votes had been promised already. The final tally was a sweeping victory for the bill, passing 60 to 39. The bill can be sent to the President for approval. The President's decision is expected by next week at the latest.
Source for this article -Wall Street reform bill passes the Senate by Personal Money Store.
Wall Street reform bill finally passed
The Senate first had to vote to kill discussion. As outlined by CNN Money, the vote to stop debate passed 60 to 38. Final voting began soon after. The financial reform legislation has been floundering for over a year, as it was introduced in 2009. Key Senate Republicans were needed to see it through. However, the bill nevertheless has staunch Republican opposition in both houses.
What the bill will do
Wall Street is the bills' prime target. Specific trading and betting on the market is affected, including securities, derivatives, and repackaging and selling debt. The Wall Street reform bill also creates mandatory middle men, so firms are more insulated from each other. There may also be an advisory board created that will determine how to break up mega firms on the brink of collapse. The bill also creates a consumer financial protection agency which will regulate credit cards, consumer credit like paydayloans, and mortgage loans. The Consumer Financial Protection Bureau could be part of the Federal Reserve.
The critics weigh in
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 John Boehner, R – OH, the House Minority Leader has already said it should be repealed, and Senate Minority Leader Mitch McConnell, R-KY, has said the bill will "stifle growth and kill jobs ." Freddie Mac and Fannie Mae aren't addressed whatsoever, and the Federal Reserve, with its monetary policy exempted, could be audited only after it makes emergency cash loans, and the monetary policy of the Fed is exempted from any audits.
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