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.
"The House is poised to pass legislation aimed at preventing the next big financial crisis ....
When I started reading this, I thought that rest of the article would say something about putting a halt to discretionary spending, but alas, just more legislation, most likely laden with bennies for your buddies.
""The bailouts of AIG and Bear Stearns would be not possible – made illegal – under this bill...If a company fails, it'll be put to death."
Now we'll see who REALLY lives in the pockets of Wall Street. What's the excuse for obstructing this going to be GOPers? Some nonsense about the free market regulating and fixing itself and if we just leave it alone credit card companies will magically learn how not to behave is a usurious manner?
More regulation = More socialism. And raising the debt ceiling as well....will the democrats EVER stop their spending spree? I cannot wait until November.....
This soundslike good legislation. It's about time Wall St. had some real regulation.
the CFO and CEOs themselves need stronger review before hiring
make sure they have more than "big picture skills"
they need the background and wisedom to catch the math, logical and finance errors that happen in such huge undertakings as corporate budgets and projects
these reports that are passed up to them need to be extensively questioned by them all the way to the basis of risk and probability of failure, simply hiring big picture people does not give the commensense needed to question the evidence presented to the CEOs for action
Good – it's about time.
When McCain and the Keating 5 started this decades, it meant the decline of middle-class America.
Kck the obstructionist republicans out of office.
decades ago -–
Too little too late I say!
How about taking it a step further and breaking up existing "too big to fail" companies and separating the banking and investing industries? I'll be really surprised if this "reform" actually changes anything. Wait 'til it gets butchered in the senate. Have a nice day!
Regulation is definitely needed.
Good.....Now it goes to the Senate to take 6 months to pass.......the house has been very aggressive w/ legislation this year.....Pelosi has done marvelous.......The house passed healthcare, energy, and now regulatory reforms.......
The senate is so spineless........
Anything that Barney Frank is involved in is WRONG, such a loser.
Will banks still be forced to give mortgages to people who cannot possibly repay them?
i hope they know what there talking about,,,,with barney frank leadership ,,,becareful what you ask for,,..he screw up fannie and freddie,,,and america is hurting....
How about some Congressional regulatory reform? I am looking at you Rangle.
Except what Frank forgets is that he is part of the problem. Look up on youtube and you can see a video of him trying to protect Fannie and Freddie from being regulated. You can hear him saying that those companies are strong and that there are no problems and they don't need regulation...him and a host of other democrats. Who created these problems? Frank doesn't need to do anything but look into a mirror to answer that question.
Will this make our credit card costs and fees rise to like the last time Congress "saved" us. Maybe if we didn't have the NEA running our education system we could have people learn about taking personal responsibility instead of have some pointy headed legislators "bail" out the dummies at the expense of those who can think for themselves and take personal responsibility for their lives. Of course that would spell the doom of unions and liberalism.
That's good news! Now, hopefully we won't have a bunch of grandstanding & obstructing by the Party of We-Don't-Like-Anything-the-Democrats-Do-Especially-If-It-Will-Help-the-Middle-Class! Although that's futile hoping, I know.
""If a company fails, it'll be put to death."
Isn't this the way free market economies work to begin with?
This is an excellent start and very much needed! I would also recommend we implement a “federal bank” in the same capacity as private banks, just to keep the other banks honest! I have found in other countries using federal banks, private banks cannot get away with as much BS.
Can't wait to see the morons in the Senate try to take this issue on. Especially with the Republicans poised to obstruct any regulation.
What ever made us think that lowering income and capital gains taxes on the rich would spur job grouth and result in a trickle down of that wealth? The rich never spend money, that is why they are rich. What ever made us think reducing government regulation of banks and Wall Street,. ("Get government off of our backs") would result in a better economy? That is about as stupid as taking the lid off the cookie jar in a kitchen full of spoiled brats. Strick regulations and lower taxes on the middle class results in them buying goods for their families and a river of wealth that spurs job grouth producing those goods. Reaganomics is finally dead!
we know big barney is familiar with Fannie Mae, ( he and dodds ) benefitted greatly..but big barney is like the rest of the hangers on..can't seem to get the Freddie Mac report published..why is that..
"If a company fails, it'll be put to death." – closing the door after the horses are out... how convenient.
The real question is who is in charge of overseeing this regulation and who is calling the shots. I sure hope it's not barney and dodd and it sure as heck better not be the (non)federal reserve.
Typical right wing comment, " Boo, something very scary is right around the corner. You can't see it, but I can predict the future, and it's gonna be really, really bad." You can apply this to pre-election hysteria, health care reform, any bi-lateral talks with any other country, anything realted to the UN, TARP, etc... Isn't this getting old yet?