Senate Passes Historic Financial Overhaul Reform Bill
May 25, 2010 by Special To Personal Liberty
After barely clearing the 60-vote threshold to end debate, Senate Democrats passed a financial reform bill last week that will revolutionize the way that large banks operate.
The legislation, which now needs to be reconciled with the House version that was passed in December, will increase the role of federal regulators, establish new procedures to prevent bailouts and limit the use of derivatives, according to CNN.
"To Wall Street, it says: No longer can you recklessly gamble away other people’s money," said Senate Majority Leader Harry Reid (D-Nev.). "It says the days of too big to fail are behind us. It says to those who game the system: The game is over."
While the majority of Republicans agree that reform was necessary, most feel that the measure will negatively impact the marketplace.
"This bill doesn’t listen to the American people—it promises massive government overreach in ordinary business transactions," said Senator Richard Shelby (R-Ala.). "The decisions we’ve made will have an impact on the lives of Americans for decades to come."
Republicans leaders also heavily criticized the fact that Fannie Mae and Freddie Mac, the nation’s two largest mortgage companies, will be virtually unaffected by the new measures. Due to last year’s Federal bailout, both corporations are now government-affiliated.