A Wall Street Reform bill was signed into law by President Obama Wednesday. The financial reform bill should change the financial industry more than other things since the Depression. The financial reform bill was called by Obama “the strongest consumer financial protections in history.”. Republicans called the bill a permanent Wall Street bailout that would hurt small community banks and send jobs overseas.
Financial reform bill changes the laws
The U.S. economy was severely hurt by Wall Street two years ago, and after months of debate, Obama has finally finished signing the bill. The bill barely passed in Senate although Politico reports Democrats wanted a bipartisan financial reform bill. Most Republicans argued the bill failed to address the root cause of the 2008 financial crisis- the lending policies at mortgage giants Fannie Mae and Freddie Mac. Jobs would also have to be moved to other countries because of strict rules.
Signing ceremony guest list
At the signing ceremony for the financial reform bill, Obama was flanked by the senators who authored the bill- Congressman Barney Frank of Massachusetts and Senator Chris Dodd of Connecticut, as well as others from Congress who contributed to the reform efforts. The Washington Post tells us that what will tell us most about the bill is not those who attended; rather, those who didn’t attend will tell us more. Among those who did not receive a signing ceremony invitation were Wall Street titans James Gorman of Morgan Stanley, Lloyd Blankfein of Goldman Sachs, John Stumpf of Wells Fargo and Jamie Dimon of J.P. Morgan Chase.
One catch to the Wall Street reform
During the ceremony, Obama challenged criticism from Republicans and Wall Street. He said the financial system “only works – our markets are only free – when there are clear rules and basic safeguards that prevent abuse, that check excess, that ensure that it is more profitable to play by the rules than to game the system.” The president also said that the meat of the financial reform bill can be left to regulators and that Wall Street greed will still have wiggle room to maneuver. It can be longer than a year for many of the regulations within the bill to start taking place.
Republicans think we are just bailing out Wall Street?
The financial reform bill overcame strenuous opposition from Republicans, who charged that by targeting Wall Street greed, it did not address the root troubles that caused the meltdown. CBS News reports that in a statement following the signing, House Republican leader John Boehner (who did not receive a signing ceremony invitation) said the bill “provides permanent bailouts for his Wall Street allies at the expense of community banks and small companies around the country, while doing nothing to reform Fannie Mae and Freddie Mac, the government mortgage companies that triggered the financial meltdown by giving too many high-risk loans to individuals who couldn’t afford them.”
Discover more information on this topic
Politico
politico.com/news/stories/0710/40027.html
Washington Post
washingtonpost.com/wp-dyn/content/article/2010/07/21/AR2010072101614.html?hpid=topnews
CBS News
cbsnews.com/8301-503544_162-20011201-503544.html
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