United States Senate passes financial overhaul bill

Thursday, July 15, 2010

President Barack Obama, one of the politicians in favor of the bill, who is expected to sign it next week.
Image: United States Senate.

On Thursday, the United States Senate approved the financial overhaul package in a 60-39 vote. The bill is now awaiting President Barack Obama's signature.

Obama is expected to sign the legislation into law next week, and the focus now switches to how the new regulations will be implemented in the coming weeks and months. The legislation will give financial regulators significant discretion in shaping the rules.

The legislation also puts faith in regulators to spot developing problems in the financial system, and gives them the authority to act to attempt to prevent another financial crisis. The bill calls for banks to hold more money in their reserves to prepare for bad economic situations, but the details of how this will be done are also up to regulators.