Friday, May 21, 2010

Senate passes financial reform

The U.S. Senate voted 59-39 late Thursday to pass the most sweeping financial reform legislation since the Great Depression in an effort to prevent a repeat of the financial crisis of 2008.

The bill would create a consumer protection agency, place new capital restrictions on banks and increase oversight of derivatives trading. Critics have slammed the bill for not addressing Fannie Mae (FNM) and Freddie Mac (FRE), the government-backed mortgage companies that many say contributed to the financial market meltdown.

Four Republicans voted for the bill, and two Democrats voted against it. The legislation will now have to be reconciled with the House version, then both chambers of Congress will vote on the final bill.

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