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Senate passes sweeping Wall Street reform

Jetboogieman

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WASHINGTON (CNNMoney.com) -- The Senate on Thursday passed the most sweeping regulatory overhaul of the financial system since the New Deal.

The bill, which passed 59-39, imposes more oversight and stronger capital cushions for the largest banks and Wall Street firms, while aiming to stop bailouts, shine a light on complex financial products and strengthen consumer protection.

The bill only needed 51 votes to pass. Four Republicans voted for it and two Democrats voted against it. Earlier in the evening, the bill cleared a tougher hurdle, a 60 vote threshold, to end debate.

"Those who wanted to protect Wall Street, it didn't work. They can no longer gamble away other people's money," said Majority Leader Harry Reid. "When this bill becomes law, the joyride on Wall Street will come to an end," he added.

Senate passage marks the last big hurdle for an effort more than a year in the making. The bill will now be reconciled with the House version in "conference" negotiations, where differences are ironed out.

Then both chambers will vote again and send the compromised bill to President Obama sometime before July 4, said the bill's main shepherd, Sen. Christopher Dodd, D-Conn.


Senate passes its version of Wall Street reform - May. 20, 2010
 
"Those who wanted to protect Wall Street, it didn't work. They can no longer gamble away other people's money," said Majority Leader Harry Reid. "When this bill becomes law, the joyride on Wall Street will come to an end," he added.

That ranks right up there with the stupidest ****ing things I've ever heard.

I'll take 10:1 odds on whether GS's bonus pool 5 years from now will be larger than it is today.
 
For all the talk about this being a major policy victory for Obama, nobody seems to have much noticed or cared.
 
Another 2000 page monstrosity that no one has read. Great!


j-mac
 
Another piece of landmark legislation ready to be reconciled and delivered to the White House for the president's signature. Obama's first two years in office have been decisive in addressing chronic failings of the American system. Not since LBJ have we seen a president affecting so many areas of our society. These are extraordinary political achievements.
 
the financial times of london, probably the most prestigious publication on matters economic in the world

FT.com / Global Economy - Markets take fright at political moves

Fears of a disorderly regulatory crackdown on banks and financial markets triggered a crisis of confidence among investors on Thursday that sent share prices reeling in a global flight to safety.

US, European and Asian shares all tumbled in the wake of Germany’s partial ban on naked short selling and ahead of a crucial vote on the US financial regulation bill. The S&P 500 fell 3.9 per cent, bringing its losses since late April to 12 per cent and pushing it into “correction” territory.
 
the president prevaricates

"there will be no taxpayer funded bailouts, period," preened the prez at his rose garden regalia in a rush

Dems: Wall St. reform in homestretch - Carrie Budoff Brown - POLITICO.com

oh?

what about imf's underfunding of the evaporating euro, which obama and tax cheat geithner pressured the prussians to approve?

Debt Aid Package for Europe Took Nudge From Washington - NYTimes.com

what about the EXEMPTION for fannie and fred, NOT included in dead dodd's deal?

WSJ?s Must-Read on Fannie, Freddie reform | Washington Examiner

despite the roofless reconstruction the failing f's were afforded on christmas eve?

U.S. to Lose $400 Billion on Fannie, Freddie, Wallison Says - Bloomberg.com

fred asked for 10.6B just a couple weeks ago

Freddie Mac asks for fresh 10.6 billion dollar bailout - Yahoo! Singapore News

how are the housing giants to recover when just last week repo's reached a rueful record?

US home seizures reach record - BloombergUTV.com

when mortgage delinquincies on may 19 set an all time high?

Mortgage delinquencies drag on economic recovery - Yahoo! Finance

what about the EXCLUSION of "large, complex, cross-border financial institutions" from dodd's deed?

Simon Johnson: Hard Pressed, Senator Dodd Gives Ground

i thought too-big was the target

the president poses, he's not up front
 
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Thank goodness.

Now let's hope that the House can reconcile the bill so real work can be done! We need this reform badly.
 
Thank goodness.

Now let's hope that the House can reconcile the bill so real work can be done! We need this reform badly.

And do so in a way that it is effective.
 
Thank goodness.

Now let's hope that the House can reconcile the bill so real work can be done! We need this reform badly.

what exactly needs reform or more importantly what is made better by giving more government control of it?
 
And do so in a way that it is effective.

I agree. We don't need watered down legislation.

what exactly needs reform or more importantly what is made better by giving more government control of it?

Much needs reform from CEO salaries to how loans are given.

The government isn't going to own the banks, they are just passing regulatory measures to help insure that we don't go through another financial crisis.

The banks will still be run by CEOs and staff members, they just can't hurt the American people anymore with foolish business and having the rich CEOs as the priority.
 
I agree. We don't need watered down legislation.



Much needs reform from CEO salaries to how loans are given.

The government isn't going to own the banks, they are just passing regulatory measures to help insure that we don't go through another financial crisis.

The banks will still be run by CEOs and staff members, they just can't hurt the American people anymore with foolish business and having the rich CEOs as the priority.

If the head of Citi makes $1m, $10m, or $50m, how does that affect anyone other than Citi's shareholders?
 
Basically all this bill needs to do to not be a total frack up is:

1) Create a transparent market for derivatives
2) Penalize excessive risk taking by large institutions
 
Basically all this bill needs to do to not be a total frack up is:

1) Create a transparent market for derivatives
2) Penalize excessive risk taking by large institutions

"For example, with almost universal recognition that banks lacked sufficient capital going into the financial crisis, it should be a "no-brainer" to fix our flawed regulation of bank capital — in other words, to prevent banks from borrowing 40 times as much as their assets, as Lehman Bros. was doing shortly before its collapse.

Sorry, no: The Dodd bill simply proposes that its new "council of regulators" may recommend that the Federal Reserve impose more stringent standards. Yes, that's may. The bill doesn't even require regulators to change the current levels or framework for bank capital.

The bill doesn't even eliminate zero-down mortgages — or any of the irresponsible lending products that plainly contributed to the crisis. Indeed, Dodd twice fought off floor amendments to require modest down payments.
"

Dodd's Do-Nothing Financial 'Reform' | Mark A. Calabria | Cato Institute: Commentary

It seems we will be leaning on regulators to make the necessary choices, lets hope they don't drop the ball like they did with Madoff.

Also, the bill rolls back some consumer protections under RESPA.
 
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I agree. We don't need watered down legislation.



Much needs reform from CEO salaries to how loans are given.


obviouschild said:
1) Create a transparent market for derivatives
2) Penalize excessive risk taking by large institutions



So we need government to micro manage the banks? Let's see here, how does the government do when it comes to sticking to a budget? Oh yeah I remember now....THEY DON'T!!!!!!


j-mac
 
Sounds like more of Obama government take over to kill our capitalist economic system
 
Yeah, because we all know that Capitalism sucks! It's so unfair.....[/sarcasm]


j-mac
 
I think the most surprising thing is how little debate their was. I guess people were tired after all the hooting and hollering over health care reform.
 
It doesn't sound very strong, which is a good thing, IMHO. Best to let the market take care of itself.

It requires a lot of studies.

Unfortunately, it leaves the rescinding of Glass-Steagull Act in place so that Investment Banks and Commercial Banks can merge. :(
 
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