Senate passes financial reform bill
New legislation that will regulate the banking industry, including mortgages and credit cards, was passed by Congress.
After a 60-39 vote in the Senate, Wall Street reform legislation will now make its way to President Barack Obama’s desk. The new rules bring a wide array of changes to the financial world, including additional banking regulations and a new agency to help protect consumers.
The goal of the legislation’s supporters was to prevent the financial difficulties faced by the nation that led to the recent recession, including derivatives trading and the risky loans granted by lenders to subprime borrowers.
“We’re giving consumers and taxpayers the strongest protections they’ve ever had,” Senate Majority Leader and Nevada Democrat Harry Reid said after the bill passed.
Once signed by the president, the legislation would create the Consumer Financial Protection Bureau within the Federal Reserve System. The new agency would oversee financial products in an attempt to ensure people are not being taken advantage of.
Furthermore, the government would be able to break up large banking and financial institutions whose demise would threaten the rest of the economy.
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