US Senate Passes Sweeping Financial Reforms Bill
The US Senate has passed a sweeping financial regulatory reform bill, overhauling the regulation of everything from ‘too big to fail’ banks to consumer financial products to exotic instruments such as credit default swaps (CDS) and derivatives. The final bill, more than 2,300 pages in length, directs regulators to create 533 rules, according to the Chamber of Commerce. The bill passed 60 to 39.
The Dodd-Frank bill:
However, many are not satisfied with the bill in its final form. It orders 68 studies, and leaves major decisions up to regulators prone to lobbying and industry influence.
The Consumer Bankers Association (CBA) stated: “The Dodd-Frank bill is overreaching and will add confusion in the marketplace for all parties involved, especially the consumer. Regrettably, Congress missed a valuable opportunity to comprehensively address the economic crisis, forcing a solution to a problem not yet fully defined. The Consumer Bankers Association looks forward to working with regulators to ensure rules are implemented in a responsible manner.”