Washington (CNNMoney.com) – The House passed legislation Friday aimed at preventing the next big financial crisis, ushering in the most sweeping set of changes to the banking regulatory system since the New Deal.
The bill, which passed 223-202, imposes more oversight and stronger capital cushions for the largest banks and Wall Street firms. It forces them to pay a total of as much as $150 billion into an emergency fund that could be tapped when a troubled firm needs to be taken over and broken up.
The legislation also calls for the regulation of some derivatives and creates a new Consumer Financial Protection Agency to regulate products such as credit cards and mortgages.
"The bailouts of AIG and Bear Stearns would be not possible - made illegal - under this bill," Rep. Barney Frank, D-Mass., chairman of the House Financial Committee, said Wednesday as debate started on the bill. "If a company fails, it'll be put to death."
The House rejected, by 223-208, an amendment that would have effectively killed the Consumer Financial Protection Agency, replacing it with a council of existing regulators.
I hope it passes. Let the regulations begin!
" Rep. Barney Frank, D-Mass., chairman of the House Financial Committee, said Wednesday as debate started on the bill. "If a company fails, it'll be put to death."
I could not agree more, I think the same should hold true for our elected officials, if they fail us, they should be put to death! When can we schedule your appointment?
Sorry Rep Frank, bailouts should never have been possible. If a company fails that means it has died so no need for anyone external to put it to death. Regulations should be minimal but have clout. Then let companies operate as they choose within those minimal regulations and keep the government out of managing the weeds.
Given that de-regulation back in the late 1990's (yes Gramm-Leach Act)...oh yeah, they were Republicans caused a great deal of this, coupled with the reduction in document requirements for loans (thank you Bush administration-2002), with no insights that FNMA & Freddie were in trouble (thank you Mr Frank, and the GOP led banking committee), then add reducing capital requirements (thank you Chris Cox,, SEC 2005), and this is what we have today. Smart regulation is needed. This is a start.
Barney is so clueless (liberal) that he fails to realize that he is the biggest cause of our countrys collapse. Oh i forgot–Dodd and Obama too.
"What's the excuse for obstructing this going to be GOPers?"
How about this....You libs don't have a freak'en clue what's in this bill and what it does. You just nod your silly little head "yes" to everything the Dems put in front of you.
AIG would NEVER have needed a bailout if it hadn't been for Frank, Freddie and Fannie.
I seem to recall that JFK cut taxes during a war. And, I believe I heard Mr. Regulation himself (Barney Fwank) say that more regulation on Fannie and Freddie weren't needed when that old guy McCain was leading a charge to have regulation put on the mortgage lending market.
Somehow this all comes back to Bush and Reagan. A study of history will enrich your mind more than ruminating on bumper stickers.