Thread: WIN WIN WIN: Senate passes Financial Reform Bill

That's the OT mantra




However the Clinton, Reagan, and Bush 1 era's set the ground work for most of this stuff.

The legislation on Thursday passed the Senate's Financial Reform Bill that would avoid the repeat of the financial crisis that hit the U.S. Economy badly in 2008.

The bill was passed with 59 votes in favor (53 democrats along with four republicans and two Senate independents) and 39 votes against the bill.

Since 1930, it is the biggest reform for the sector. Now, the bill will be reconstructed with a similar one passed earlier in December by the House Of Representatives before submitting it to the President Barack Obama to make it a law.

These rules were made to reduce confusion between the banks and prevent further collapse of firms. It entails setting up of new regulatory bodies and restricting the action of banks and other financial firms.

The most unwanted part of the bill is the Volcker Rule, which was named after Former Fed Chairman Paul Volcker. It states that the banks can be asked to stop proprietary trading. Proprietary trading means trading with own capital than those of client's. This measure will create difficulties for banks to grow.

The favorable part of bill
A council would be established which would contain 'system risk' regulators to monitor the increasing risks in financial system.

Within the Federal Reserve, a new Consumer Protection Division would be created for issuing new rules to keep a control on mortgage lending and credit card issuance.

The Federal Reserve will be given complete right to supervise the largest company with large finance, so that it does not become threat for the government and economy in future.

The objectionable part of the bill
The opponents were worried about the effects of the measures on free flow of capital on Nation's economy.

Christopher Dodd, Democratic author of Senate bill, said that the bill is hardly perfect and requires certain modifications. He also said that the bill would be revised before July 4.

The most unwanted part of the bill was the Volcker Rule, which was named after Former Fed Chairman Paul Volcker. It stated that the banks can be asked to stop proprietary trading. Proprietary trading means trading with own capital than those of client's. This measure will create difficulty for banks to grow.

Derivatives and complex financial instruments, whose prices are influenced by markets, were regarded as undesirable changes of the bill.

The bill does not deal with the government sponsored enterprises, Fannie Mae and Freddie Mac, seized by the Feds.

According to The Wall Street Journal, Sen. Judd Gregg (R., N.H.) said that the Senate bill "is probably undermining the system

We could prop up some dead bodies and have monkeys run the place and it would be more effective than what we have now.

But you're still a hack.

Scott Brown and Olympia Snowe tank for not being republican hacks.

Tea Party Brown proving his worth.

I agree that this bill is short sighted and that Fannie and Freddie have to be dealt with, however, this bill does deal with the private sector very well.

With the complicity of a Democratic Congress in the case of Reagan and Bush I...

Agreed.