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House Passes Major Financial Regulation Bill

In what is being hailed as the biggest bid to change financial regulation since Franklin Delano Roosevelt’s New Deal, the House of Representatives on Friday passed the Wall Street Reform and Consumer Protection Act of 2009. The legislation now moves to the Senate. In a press conference after the vote, House Speaker Nancy Pelosi proclaimed, “We are sending a clear message to Wall Street: The party is over.”

Is the party, in fact, over? And what impact might the new legislation have on consumers, banks and homeowners? The Associated Press whipped up a handy Q & A article (click here) to address these questions. –KA

AP via Google News:

The sprawling legislation would give the government new powers to break up companies that threaten the economy, create a new agency to oversee consumer banking transactions and shine a light into shadow financial markets that have escaped the oversight of regulators.

The vote was a party-line 223-202. No Republicans voted for the bill; 27 Democrats voted against it.

While a victory for the administration, the legislation dilutes some of President Barack Obama’s recommendations, carving out exceptions to some of its toughest provisions. The burden now shifts to the Senate, which is not expected to act on its version of a regulatory overhaul until early next year.

The president praised the House action Friday, and called on Congress to act swiftly to get the bill to the White House for his signature.

“The crisis from which we are still recovering was born not only of failure on Wall Street, but also in Washington,” Obama said. “We have a responsibility to learn from it and to put in place reforms that will promote sound investment, encourage real competition and innovation and prevent such a crisis from ever happening again.”

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