House OK’s financial overhaul; Senate next
The House has passed a sweeping overhaul of financial regulations, setting the stage for a final vote in the Senate, where votes for the bill remain in flux.
Wednesday’s party-line vote came after Democrats backed down from a $19 billion tax on major banks and hedge funds in hopes of securing Senate Republican votes.
At least one key Republican senator remained uncommitted, however. The Senate delayed its vote to mid-July, denying President Barack Obama a victory before Independence Day.
The legislation creates a new federal agency to police consumer lending, sets up a warning system for financial risks, forces failing companies to liquidate and lays out new rules for financial instruments that have been largely unregulated.