Saturday, July 24, 2010

Reforming Wall Street began at signing ceremony on Wednesday

Reforming Wall Street began at signing ceremony on Wednesday

Wednesday, the President finally signed the Wall Street Reform bill. The financial reform bill is called probably the most sweeping financial industry reform legislation since the Great Depression. At the signing ceremony for the financial reform bill after months of debate, Obama called Wall Street reform “the strongest consumer financial protections in history.”. If you ask republicans their opinion, the bill will hurt community banks and make for more unemployment within the country by bailing out Wall Street over and over. Source of article – Wall Street reform set into motion Wednesday at signing ceremony by Personal Money Store by Personal Money Store.

Financial reform bill finally becomes law

The bill was signed by Obama after debate and two years after Wall Street hurt the U.S. economy. Despite the fact that the bill was hoped to be bipartisan be Democrats, it was reported by Politico that it almost didn’t even pass in senate. The bill should have been more focused on Fannie Mae and Freddie Mac considering it was the reason for the 2008 financial crisis, as outlined by numerous Republicans. Republicans also said the bill would force financial firms to move jobs overseas to avoid stricter oversight.

Those at the signing ceremony

At the signing ceremony for the financial reform bill, Obama was flanked by the senators who authored the bill- Congressman Barney Frank of Massachusetts and Senator Chris Dodd of Connecticut, as well as others from Congress who contributed to the reform efforts. But the Washington Post reports that the individuals who weren’t there speak volumes about the bill. Jamie Dimon of J.P. Morgan Chase, John Stumpf of Wells Fargo, Lloyd Blankfein of Goldman Sachs, and James Gorman of Morgan Stanley weren’t even invited to the event.

Wall Street reform – with a catch

Republicans and Wall Street have given Obama a lot of criticism which he challenged. He said the financial system “only works – our markets are only free – when there are clear rules and basic safeguards that prevent abuse, that check excess, that ensure that it is more profitable to play by the rules than to game the system.” The financial reform bill will leave room for regulators and Wall Street to make their own decisions still. Numerous of the rules within the bill won’t take place for a year still.

Bailing out Wall Street according to Republicans?

Republicans argue the financial reform bill just helps Wall Street and doesn’t even address the problem that caused the financial crisis. CBS News reports that in a statement following the signing, House Republican leader John Boehner (who did not receive a signing ceremony invitation) said the bill “provides permanent bailouts for his Wall Street allies at the expense of community banks and small businesses around the country, when doing nothing to reform Fannie Mae and Freddie Mac, the government mortgage companies that triggered the financial meltdown by giving too many high-risk loans to people who couldn’t afford them.”

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Washington Post

CBS News

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