President Barack Obama will sign the financial regulation overhaul on Wednesday, making the most sweeping rewrite of the country’s banking and securities legislation since the Great Depression.
The Dodd-Frank bill, named for its primary sponsors, Sen. Christopher Dodd (D-Conn.) and Rep. Barney Frank (D-Mass.), cleared its final legislative hurdle on Thursday when the conference bill—which hammered out the differences between the House of Representatives and Senate versions—passed the Senate. The bill creates a new regulatory system designed to avoid financial crises like that of 2008, and includes a watered-down version of the Volcker Rule, strictly limiting the amount banks can invest in hedge funds and private equity funds, and requiring alternative investments funds to register with and disclose more information to the Securities and Exchange Commission.
In an ironic twist, Obama will sign the bill at the Ronald Reagan Building and International Trade Center in Washington, D.C. During his eight years in the White House, Reagan began a major series of deregulation measures.