Senate Passes Sweeping Financial Reform Package

In a Victory for President Obama, Comprehensive Wall Street Reform Bill Readied for His Signature

(CBS/AP)
Washington D.C.
July 15th, 2010

(CBS/AP) The U.S. Senate today passed a sweeping bank regulation bill that will make major changes to the U.S. financial system.

The legislation cracks down on banks and Wall Street in the hopes of avoiding another major financial meltdown. The bill has been President Obama’s top domestic priority after the passage of health care legislation, and in some ways, the bill is tougher than what he sought.

House aides say they will likely do an enrollment ceremony and the send the bill to the White House today, CBS News Capitol Hill Producer Jill Jackson reports.

Special Section: Wall Street Under Fire

The Republican Party is betting that the bill’s ambitious goals will be lost on voters and instead feed an election-year narrative that Democrats stand for bigger, more intrusive government.

But the bill bears the fingerprints of many other Republicans.

Senate Banking Committee Chairman Chris Dodd, a Democrat, negotiated several provisions with key committee Republicans such as Richard Shelby and Bob Corker.

That those bipartisan talks even occurred was remarkable in the highly politicized atmosphere in Congress. That they failed to expand the bill’s base of support illustrates how much things remain the same.

Even before the Senate passed the bill today, House Minority Leader John Boehner, R-Ohio, told reporters, “I think it ought to be repealed.”

“I think the financial reform bill is ill conceived, going to make credit harder for the American people to get, clearly harder for businesses to get and the fact that it’s going to punish every banker in America for the sins of the few on Wall Street is unwise,” he said. “On top of that I think it institutionalizes ‘too big to fail’ and gives far too much authority to federal bureaucrats to bail out virtually any company in America they decide ought to be bailed out.”

In an interview, Dodd recalled how two months ago, struggling to secure 60 votes to simply start debate on the bill, some Democrats urged Senate Majority Leader Harry Reid to abandon the legislation and blame it on Republicans.

“There were some who wanted to quit on the bill,” Dodd said. Their reasoning, according to Dodd, was, “Why not just hold a press conference and denounce them (Republicans) for not allowing us to get there and try to reap whatever political benefits you could?”

Reid rejected the suggestion.

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