US Senate Approves Wall Street Reform Bill
忡忡 59-39 4 REPUBLICANS VOTED FOR 2 DEMOCRATS VOTED AGAINST VOTE CONSUMER PROTECTION A new Consumer Financial Protection Bureau is planned to be set up inside the Federal Reserve, with Independence from the central bank. It will protect agalnst 'mis-selling' of mortgages, credit-cards and loans. DERIVATIVES SYSTEMIC RISK REGULATION "Over-the-counter' deals will have to go through central clearing houses to lower the risk of bankruptcy from any of the parties involved. The Financial Stabillity Oversight Council of regulators would monitor markets for potential 'bubbles'. Companies that are classed as 'systemically significant' will face stricter capital, leverage and liquidity standards. Plans will also be made in case of failure. RESOLUTION AUTHORITY VOLCKER RULE Named after Paul Volcker, the former Federal Reserve chairman who sald that banks The government will have the power to seize a large institution if it faces failure and poten- tially risks the wider financial system. The government will be able to fire executives and get rid of shareholders. This is designed at preventing another 'Lehman Brothers' incident. certainly should never engage in 'casino' activities whlle benefiting from government insurance on deposits. THE WALL STREET REFORM BILL SO THAT 'AMERICANS WILL NEVER AGAIN PAY FOR WALL STREET'S MISTAKES', THE US SENATE LAST NIGHT APPROVED AN OVERHAUL OF FINANCIAL REGULATIONS. [ Source: Financial Times ]
US Senate Approves Wall Street Reform Bill
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