May 12th, 2010
05:22 PM ET
4 years ago

Fed scores wins in Wall Street reform

Washington (CNNMoney.com) - Congress is mellowing toward the Federal Reserve.

Last fall, the Federal Reserve faced an onslaught of congressional efforts to curtail its powers. But this week, the Fed beat back two major checks on its authority in the Senate's Wall Street reform bill, which was tougher on the central bank than the House version.

The Senate voted 90-9 on Wednesday to strip from the overall reform bill a provision reshaping the Fed as supervisor of only the nation's largest banks. The Senate, agreeing with chairman Ben Bernanke, now plans no change in the Fed's current regulatory power over banks - which includes large banks and smaller, state-chartered banks that choose the Fed as their regulator.

"Monetary policy cannot and should not be geared toward large banks based primarily in New York and policy makers in Washington," said Sen. Kay Bailey Hutchison, R-Texas, an author of the measure. "The Federal Reserve needs insight to the health of our banking system and economy as a whole."

Additionally, the Senate voted 96-0 on Tuesday for a watered-down version of a provision subjecting the Fed to a one-time audit of its role making cheap loans to ailing Wall Street banks during the financial crisis. The original, more controversial, measure would have subjected the Fed to ongoing congressional investigations.

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Filed under: CNNMoney.com • Financial Reform • Wall Street
soundoff (8 Responses)
  1. Chuck Anaheim, Ca

    Weak sucks!

    May 12, 2010 05:41 pm at 5:41 pm |
  2. tayo

    At least some bipartisan votes are part of the bills. Let wait for the GOPs that tend to filabuster anythings that does not go their way 100%!

    May 12, 2010 05:50 pm at 5:50 pm |
  3. stevegee

    The Fed should be abolished! It has ruined our monetary system. The U.S. dollar is worth 4% of what is was worth since the Fed was established.

    And every day that the Fed keeps printing money and propping up its big business friends and deadbeat countries like Greece, the wealth of the American people is worth less and less. And our country is dropping like a rock on the world economy scale.

    At the rate they're going, we'll all be wards of Obama ... welcome to Socialism people!

    May 12, 2010 06:47 pm at 6:47 pm |
  4. kate

    How come the GOPers weren't concerned with spending when Bush was PRes?

    May 12, 2010 07:20 pm at 7:20 pm |
  5. Aaron

    If it's broke, the last thing that Congress is going to do is fix it!

    May 12, 2010 07:23 pm at 7:23 pm |
  6. KateHikes

    Of course Congress has mellowed towards the Fed. All this supposed conflict is just a charade, people. Both institutions are controlled by the same "people," the same hook-nosed, bagel-eating, nation-wrecking tribe of people.

    May 12, 2010 07:28 pm at 7:28 pm |
  7. Bill Haverly

    The federal government cannot fix anything. It is worse now than ever what with all those elitist know-nothings brought into DC.

    May 12, 2010 08:30 pm at 8:30 pm |
  8. jd

    If you want the fed reformed. Explain. Otherwise accept you are ignorant in this arena and shut up. Note that I didn't say you were stupid. Just that you do not know what you are talking about on this issue and should shut up.

    May 12, 2010 08:59 pm at 8:59 pm |