This afternoon, the House of Representatives passed
a Democratic bill aiming to tighten federal regulation of the financial sector. The Associated Press
calls the proposal a "sweeping overhaul of financial regulations." So is it time for Democrats and populists to pop open the champagne? The passage of the landmark bill is impressive, say bloggers, but there's a rough road ahead. Here are the first reactions:
- Dems: Watch Out for Republicans Ernie Smith says "Republicans largely didn't go for the bill because they feared it
would limit credit, force job losses and lead to future bailout. They
also argued that 'too big to fail' companies didn't need hand-holding
and could handle bankruptcies." But Smith thinks that "sounds less like something
they believe and more like something they can use against the
- Senate Will Be Tough The Washington Post's Ezra Klein predicts that "what you're going to hear from everybody," as the reactions flow in, "is some variation of 'the Senate will be harder.'"
- 'Landmark' Bill May Not Survive in Current Form Though "the legislation is extremely ambitious," says The Atlantic's own Daniel Indiviglio, "I would expect this bill to be watered down significantly for it to get through [the Senate]. Remember, the bill only passed by a measly five votes
in the House." Currently, the massive overhaul "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
- Financial System Still Bad The current bunch of populists are a tough crowd to please. Case in point: Harry Moroz. Writing at The Huffington Post, Moroz says "the financial
reform bill codifies into law a financial system that will always be on
the brink of destruction."
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