House passes historic financial rules revamp

December 11, 2009 by THE POLITICUS

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WASHINGTON - A year after Wall Street failures plunged the U.S. into recession, the House of Representatives on Friday passed the most ambitious restructuring of financial regulation since the New Deal of the 1930s.

The sprawling legislation gives the government new powers to break up companies that threaten the economy, creates a new agency to oversee consumer banking transactions and shines a light into shadow financial markets that have escaped the oversight of regulators.

The vote was a party-line 223-202. No Republicans voted for the bill; 27 Democrats voted against it.

While a victory for the Obama administration, the legislation dilutes some of the president's recommendations, carving out exceptions to some of its toughest provisions. The burden now shifts to the Senate, which is not expected to act on its version of a regulatory overhaul until early next year.

"This legislation brings us another important step closer to necessary, comprehensive financial reform that will create clear rules of the road, consistent and systematic enforcement of those rules, and a stronger, more stable financial system with better protections for consumers and investors," President Barack Obama said in a statement.

He urged the Senate to also pass its version of the bill.

"I look forward to signing a strong bill that establishes and enforces clear rules; closes the loopholes that allowed Wall Street firms and other creditors to game the system and evade accountability; protects consumers and investors from predatory lending and deceptive financial practices; and gives the government the necessary tools to prevent any institution from posing a risk to the whole system or making the American taxpayer collateral damage in the event of future turmoil," his statement said.

Read more at http://www.msnbc.msn.com/id/34379897/ns/business-us_business/

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