Landmark Financial Regulation Bill Passes In The House

More

The U.S. House of Representatives passed the most sweeping financial regulation bill since the Great Depression on Friday afternoon. The legislation is extremely ambitious. It seeks to create a new Consumer Financial Protection Agency (CFPA) to regulate consumer credit products, to create a systemic risk council, to provide the Federal Reserve the authority to function as the systemic risk regulator, to create a non-bank resolution authority, to provide better oversight of the derivatives market, and to reshape the financial market as we know it today. It's an important first step in such legislation being written into law. But it's only a first step, and there's a lot of work left for Congress.

The vote had the same margin as the earlier failed CFPA amendment -- it passed with 223 ayes, by just five votes. The House's bill was based on recommendations from the Obama administration and Treasury, so you can expect that the President will come out in strong support of the legislation.

I wish I could provide a link to full text of the bill, but given all of the amendments that have been adopted, that's just impossible at this time. But here's its skeleton, if you're interested. I considered the initial bill at length in October, and also analyzed a few of the amendments. Frankly, I doubt many of the Reps that voted for it knows exactly what the final legislation contains.

Now comes the really hard part -- the Senate. I would expect this bill to be watered down significantly for it to get through the more moderate chamber. Remember, the bill only passed by a measly five votes in the House. Meanwhile, the Senate hasn't even had significant progress marking-up its version of financial regulation. Most reports I've read expect some final version of financial regulation to be signed into law sometime next spring.

Jump to comments
Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.
Get Today's Top Stories in Your Inbox (preview)

A Breathtaking Tour Above the Moab Desert

Filmmaker Ian Cresswell rigs an HD camera atop a remote-controlled "octocopter" for some spectacular aerial views.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Where Time Comes From

The clocks that coordinate your cellphone, GPS, and more

Video

Computer Vision Syndrome and You

Save your eyes. Take breaks.

Video

What Happens in 60 Seconds

Quantifying human activity around the world

Writers

Up
Down

More in Business

Just In