Friday, June 25, 2010

Financial Reform passed!/How did Scott Brown get to be in charge of bank reform?

Our financial system failed us in 2008. One of the biggest victims has been our school system. Why don't Republicans agree that we need financial reform?

UPDATE: Financial reform passed!

Lawmakers agree on historic Wall St reform at dawn
Charles Abbott and Andy Sullivan
Fri Jun 25, 2010

U.S. lawmakers hammered out a historic overhaul of financial regulations as dawn broke over the nation's capital on Friday, handing President Barack Obama a major domestic policy victory on the eve of a global summit devoted to financial reform.

In a marathon session of more than 21 hours, legislators agreed to a rewrite of Wall Street rules that may crimp the industry's profits and subject it to tougher oversight and tighter restrictions.

To secure agreement, lawmakers reached deals in the final hours on the most controversial sections which restrict derivatives dealing by banks and curb their proprietary trading to shield taxpayer-backed deposits from more risky activities.

Banks will be allowed to keep most swaps dealing activity in-house, although the riskiest trading would be pushed out...

How did Scott Brown get to be in charge of bank reform?

As the fate of the Volcker rule is determined, the junior senator from Massachusetts may tip the balance
Andrew Leonard
June 24, 2010

...A senator sworn in five months ago owns the swing vote on the most important financial reform legislation in decades.

Brown's concerns are strictly parochial. On the one hand, he wants mutual funds and insurance companies exempted from the Volcker rule. Not uncoincidentally, such exemptions would apply to major Massachusetts-based financial institutions such as Fidelity and MassMutual...

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