It could be the biggest overhaul financial regulations in 80 years, if it gets approved on Friday. The historic legislation, pushed by President Barack Obama, is awaiting Senate approval. The legislation will attempt to put things right with the economy in terms of restricting the banking industry and possibly reducing profits.
The Senate passed the bill with one of the narrowest margins in 60-40. Not all Democrats sided with Obama, in fact two of them opposed it. Fortunately for the Democrats, three Republicans favored the bill, thus nullifying the dissenters from their own party. Obama insisted that this bill will not stifle the free market; rather, he said, it is aimed at holding financial firms accountable.
The bill could be approved as soon as Thursday; however, a few amendments are expected to be made to it and therefore a decision will be expected only by Friday. Thank banking industry is in favor of a quick approval, as they expect more amendments to be added on the more it is delayed. The amendments could dig into their profits further and this is the cause of their worry.
One of the main priorities of the bill is to cut down the practice of betting on the future costs of assets by big banks, which is largely unregulated. The bill will also increase transparency of the Federal Reserve and the accountability of the Central Bank.
The sooner the approval comes through, the sooner it will ease market uncertainty. President Obama is expected to sign the bill into law by July the latest.