House Passes Overhaul of Financial-Industry Regulations
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A year after the worst recession in a lifetime has crushed American's faith in the financial system, the House has today passed a bill that is the most ambitious economic regulation since the New Deal.
The new legislation will give the government new powers to protect the economy from future issues by being able to break up companies that threaten to cause another crisis. The creation of a new agency will take place to oversee the country’s consumer banking transactions and will give the government a closer eye on the financial markets.
The vote finished as a party line of 223-202, with no Republicans voting in favor of the bill. Notably, there were 27 Democrats that did not vote in favor of the regulation.
The Senate is now set to vote on the bill sometime early next year.
Democrats said the bill will help address the issues that caused the financial meltdown and Republicans urged that the legislation would overreach the government’s rights in the financial system and would institutionalize bailouts for Wall Street.
"The President set forth clear objectives and principles for reform that were endorsed by Congressional leaders," U.S. Treasury Secretary Timothy Geithner said. "House passage of this bill moves us an important step closer to meeting the President's objectives for reform. Comprehensive reform must establish clear rules of the road with strong enforcement for our nation's financial institutions and markets."
The new legislation will give the government new powers to protect the economy from future issues by being able to break up companies that threaten to cause another crisis. The creation of a new agency will take place to oversee the country’s consumer banking transactions and will give the government a closer eye on the financial markets.
The vote finished as a party line of 223-202, with no Republicans voting in favor of the bill. Notably, there were 27 Democrats that did not vote in favor of the regulation.
The Senate is now set to vote on the bill sometime early next year.
Democrats said the bill will help address the issues that caused the financial meltdown and Republicans urged that the legislation would overreach the government’s rights in the financial system and would institutionalize bailouts for Wall Street.
"The President set forth clear objectives and principles for reform that were endorsed by Congressional leaders," U.S. Treasury Secretary Timothy Geithner said. "House passage of this bill moves us an important step closer to meeting the President's objectives for reform. Comprehensive reform must establish clear rules of the road with strong enforcement for our nation's financial institutions and markets."
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