Senate passes Wall Street reform bill

The United States Senate has finally 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 President’s desk is the next stop for the bill. The President’s decision is expected by next week at the latest. Resource for this article – Wall Street reform bill passes the Senate by Personal Money Store.

The Wall Street reform bill finally headed for final decision

Before the final vote on the bill, the United States Senate had to quash discussion. The measure to kill debate, as outlined by CNN Money, passed 60 to 38. Soon afterwards, the final vote began. Since spring 2009, a financial reform bill has been expected. The support of some Senate Republicans was needed to get the bill passed. Republicans of both houses still oppose the bill.

What effects the bill has

The bill is largely aimed at Wall Street. It prevents some complex trades, and certain bets on securities, derivatives, and debt bundle packages. The Wall Street reform bill mandates middle men be involved in certain kinds of trades, so firms insulate themselves from each other better. An advisory and regulatory board will be created that will decide the fate of huge firms that are collapsing. A consumer financial protection agency that oversees consumer loans like paydayloans, mortgage loans and credit cards may also be created. The Federal Reserve will house the Consumer Financial Protection Bureau.

The critics weigh in

According to the Wall Street Journal, the economists they surveyed were split down the middle whether they would have voted for it. Most believe that the effects will be minimal. 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 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.

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