House Backs Financial Regulation Reform

Jul 1 2010 | 11:50am ET

The House of Representatives yesterday gave its final approval to the most sweeping overhaul of U.S. financial regulations since the Great Depression.

The bill includes strict new rules for banks—including a ban on proprietary trading and a consumer financial protection agency, but lets hedge funds off relatively easy—passed by a vote of 237 to 192. Nineteen Democrats opposed the legislation, while three Republicans crossed party lines to vote for it.

The legislation—which was already approved by both houses of Congress but required reconciliation to hammer out differences between the two bills—now moves to the Senate, where a vote is expected later this month.

While the original bill passed the Senate with the support of three Republicans, one of those Republicans, Sen. Scott Brown (R-Mass.) said he was still unsure that he would vote for the bill. Democrats need at least 60 votes to pass procedural requirements to bring the bill to a vote, without Brown and following the death of Sen. Robert Byrd (D-W. Va.) this week, they would have exactly that number.

The final bill includes a much-watered down version of the so-called Volcker rule, which was designed to keep banks from putting too much of their money in hedge funds and private equity funds. Under the version that survived the House-Senate conference, banks will be permitted to invest up to 3% of their capital in alternative investment funds.


In Depth

Electronifie: Better Bond Trading

May 11 2016 | 3:03pm ET

Technology has revolutionized countless aspects of investing and trading, but the...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...