On Wednesday, President Obama has signed the long-delayed Financial Reform bill into a law. The legislation is to give safeguards for the public. The law will end “Too Big to Fail” in saving businesses and industries. From AP via Yahoo News:
Reveling in victory, President Barack Obama on Wednesday signed into law the most sweeping overhaul of financial regulations since the Great Depression, a package that aims to protect consumers and ensure economic stability from Main Street to Wall Street.
The law, pushed through mainly by Democrats in Washington’s deeply partisan environment, comes almost two years after the infamous near financial meltdown in 2008 in the United States that was felt around the globe. The legislation gives the government new powers to break up companies that threaten the economy, creates a new agency to guard consumers and puts more light on the financial markets that escaped the oversight of regulators.
Obama described them all as commonsense reforms that will help people in their daily life — signing contracts, understanding fees, being aware of risks.
He went so far as to call the reforms “the strongest consumer protections in history.” The president added to a burst of applause: “Because of this law, the American people will never again be asked to foot the bill for Wall Street’s mistakes.”
Republicans think otherwise; “Too Big to Fail” won’t go away because it now becomes entrenched in law:
Republicans portray the bill as a burden on small banks and the businesses that rely on them and argue it will cost consumers and impede job growth. Republican Rep. Darrell Issa of California called Obama’s bill-signing a “charade” that ignored the root causes of the financial crisis.
President Obama strongly disagrees:
The president said otherwise. He argued that a crippling recession was primarily caused by a breakdown in the financial system that cannot happen again.
“I proposed a set of reforms to empower consumers and investors, to bring the shadowy deals that caused this crisis into the light of day, and to put a stop to taxpayer bailouts once and for all,” Obama said to supporters. “Today, thanks to a lot of people in this room, those reforms will become the law of the land.”
AP via Yahoo Finance News has more.