Wednesday, June 30, 2010

U.S. Lawmakers Reach Accord on New Finance Rules

The Wall Street Journal reports that the financial reform bill may finally have enough support for a vote. The vote in each house is tentatively planned for next week. Journalist Damian Paletta reports that all Republicans in both the House and Senate are likely to oppose the reform.

So, what new limits does the banking industry have to look forward to?
  • A provision that would prohibit banks for making risky bets with their own funds
  • A limit on the ability of federally insured banks to trade derivatives
  • New rules for how capital flows through our economy, from loans to more complex banking products
  • New consumer-protection regulators within the Federal Reserve, with the power to break up failing companies and assign regulators to monitor financial risks.
Many lawmakers are disappointed that Government-controlled Fannie Mae and Freddie Mac remain a multibillion dollar drain on the Treasury and are left almost entirely out of this reform
According to the article, Democrats are counting on tougher regulations to keep our financial system stable, and prevent another economic meltdown.

Of course, this is all speculation until the votes next week. Read the entire article here.

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