Wall Street Reform is Finally Here! Obama to Sign Bill Today
President Barack Obama today will sign into law the Wall Street Reform and Consumer Protection Act. The final legislation was approved by the Senate last week by a vote of 60 to 39, ending an over year-long effort to pass legislation aimed at preventing another financial crisis.
The law represents the biggest overhaul of the U.S. financial-regulatory system since the 1930s. The White House has heralded the legislation as "the strongest consumer financial protections in history." This new law will have a real impact on every citizen. We will now have a Sheriff on Wall Street and as part of the financial reform, we now have the strongest consumer protections in history. Today is a big step towards empowering Main Street and reigning in reckless behavior on Wall Street. My interview this morning with FOX TV anchor Andy Dominiani is here.
The comprehensive legislation will overhaul regulations in the financial sector. It establishes a new Consumer Financial Protection Bureau to regulate consumer financial products and services like home mortgages, car loans, and credit cards.
"These protections will be enforced by a new consumer watchdog with just one job: looking out for people - not big banks, not lenders, not investment houses - in the financial system. Now, that's not just good for consumers, that's good for the economy," President Obama said in prepared remarks released by the White House ahead of the signing ceremony.
The following are a few additional highlights of the new 2300 page Wall Street Reform Bill expected to be signed into law today.
• Creates the first ever national consumer complaint hotline
• Cracks down on unfair mortgage lending practices
• Ends "Too Big to Fail" Bailouts - no more taxpayer funded bailouts
• Gives SEC authority to impose a nationwide "fiduciary duty" standard of care on all stockbrokers
• Orders the SEC to evaluate the fairness of mandatory securities arbitration for claims against brokerage firms
• Encourages "whistleblowers" by creating rewards of up to 30% of funds recovered for reporting violations of securities laws
• Provides permanent increase in deposit insurance on bank accounts from $100,000 to $250,000