The Senate last night passed a bill which claims to be the most sweeping reform of financial regulation since the 1930s. Obama used the vote to show success in combatting the power and influence of lobbyists as well as ensuring that there is not another financial crisis on the scale of the recent one and that the banks cannot cause one. This is certainly a success for Obama (although not yet legislation - it will need to be agreed with the House's version) and he will hope that this will help Democrats across the country in the mid-term elections. He also managed to win over a few key Republicans including one of our favourites, Olympia Snowe of Maine. See here for the BBC report and here for the Washington Post story. What do you think? Will this ensure Obama's success as a President or is it shoring up trouble with conservatives?
That these are the most sweeping financial reforms since the 1930s perhaps says more about how poorly regulated US banks have been than how far reaching these reforms are. Finally introducing regulations on banks that gamble should clearly have been introduced years ago.
ReplyDeleteThe 'Volcker rule' which seperates the gambling side of banking to the basic deposits and lending business is a good idea though and certainly something our new government will be considering for the UK
yes. finally the americans appear to have some common sense - go Obama!!
ReplyDeletei think we should definitely be considering similar for the UK.