Jamesb101.com

commentary on Politics and a little bit of everything else

The Senate passes the Wall Street Financial Reform Bill 59 to 39…….

I told ya they would do it……

Now the two houses bills must be reconciled……

The key Senator on the vote was Massachusetts Senator Scott Brown. along the rellaible….Senator’s Snowe and Collins…..

They went along with Democrats……..and Brown bargined for protection for the Boston Based Mutual Funds companies in the bill…..

(That is how it’s done folks….)

Democratic leaders were working to set a final vote on the bill late Thursday. Mr. Reid said he would like to vote Thursday, “in the best of all worlds.” But it remained possible the vote would be delayed until Friday.

Only 51 votes are needed for the bill to pass in the final Senate vote. The 60-40 vote earlier Thursday made final passage in the Senate very likely.

The legislation, in broad terms, is designed to close the regulatory gaps and end the speculative trading practices that contributed to the 2008 financial-market crisis, which prompted federal regulators to engineer a series of taxpayer bailouts of financial institutions.

The legislation would restrict bank trading in complex financial instruments known as derivatives, which are often used by companies to hedge against changes in commodity prices or interest rates. Many lawmakers contend that speculation in derivatives, including by large banks, contributed to the 2008 crisis. The bill includes provisions that not only would create more oversight of the derivatives market but possibly force banks to spin off their derivatives-trading operations.

The bill would also create a new system and authority for regulators to liquidate large failed institutions. And it prohibits the government from propping up large institutions in the future with public money.*

The bill would create a regulator—within the Federal Reserve—with the mandate to protect consumers from abusive financial practices across a range of products, from home mortgages to credit cards. The regulator would have independent rule-making authority. But the agency’s rules could be reviewed—and blocked after the fact—by a council of regulators created by the legislation to protect the financial system more broadly against risky activities.

The bill would also restructure the way financial companies of all sizes are overseen. The Federal Reserve would have new powers to regulate the country’s largest financial firms, regardless of whether they are banks.

The legislation consolidates the country’s national bank and thrift regulators into one agency to prevent companies from shopping for lighter supervision. It would also clear the way, for the first time, for the government to audit certain emergency-lending programs at the Fed……

More……..

* Don’t bet on this one….If they need to to they’ll figure out to get around it……

Advertisements

May 20, 2010 Posted by | Blogs, Breaking News, Government, Law, Media, PoliticalDog Calls, Politics, The Economy, Updates | , | 3 Comments