House Passes Banking Reform Bill

Senate Not Expected to Act Until 2010 House lawmakers on Friday approved a giant legislative bill that would significantly increase the regulation of U.S. financial institutions and other corporations.

The legislation is the most sweeping piece of regulatory change since the Great Depression and would place new restrictions on the activities of the nation's biggest banks. It also would limit the power of the Federal Reserve and create the Consumer Financial Protection Agency.

Bank reform legislation has been introduced in the Senate, but is not expected to be approved until next year.

The legislative package passed in a vote of 223-202 with no Republican representative voting in favor of the bill. The 1,279-page bill, along with creating the new federal consumer protection agency, would:

Establish a council of regulators to oversee systemic risks;
Begin oversight of the derivatives market;
Allow the government to take apart large, troubled firms that, if allowed to fail, could create more problems in the country's financial system.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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