News / USA

    Obama Signs US Financial Reform into Law

    Multimedia

    Kent Klein

    President Barack Obama has signed legislation to reform the business practices of U.S. financial institutions.  Passing the bill was one of the administration's major priorities.

    President Obama says the new regulations on major financial firms will protect consumers and prevent the abuses that many analysts say led to the global economic recession.

    "Reform will also rein in the abuse and excess that nearly brought down our financial system," said President Obama. "It will finally bring transparency to the kinds of complex and risky transactions that helped trigger the financial crisis."

    The new laws are the broadest reform of the U.S. financial industry since the Great Depression of 1930s.  Before he signed it, the president said the overhaul will have global implications.

    "That is why we all stand to gain from these reforms," said Mr. Obama. "We all win when investors around the world have confidence in our markets."

    The law will allow the government to take over failing financial institutions, if they are so big that their collapse would damage the U.S. economy.  The government would then sell the properties to ensure that taxpayers do not bear the cost of the failure.

    Banks will be required to keep more money on hand to cover potential losses from bad investments.  And complex transactions called derivatives will be more tightly regulated.

    Opposition Republicans in Congress are criticizing the overhaul as unnecessary government intrusion into private business.

    High-ranking Republican Representative Mike Pence says the reform amounts to a "permanent bailout of Wall Street" and he called for its repeal.

    The top Senate Republican, Minority Leader Mitch McConnell, says it will make America's unemployment problem worse.

    "Job-stifling taxes, regulations, government intrusion - these appear to be the three pillars of every Democratic legislative effort," said Mitch McConnell. "They are also the three things lawmakers can do that are guaranteed to kill more jobs."

    President Obama thanked the few Republicans who joined his fellow Democrats to vote for the bill.  He called those who did not, "a partisan minority determined to block change."

    Many of the biggest banks that were bailed out during the financial crisis have repaid their loans and are reporting profits.

    Peter Cardillo, chief market economist with the New York-based financial firm Avalon Partners, says the reforms might cut into those profits, at least initially.

    "In certain cases, probably it will change the way Wall Street does business," said Peter Cardillo. "And that means, perhaps, giving up some business.  And that means lower earnings for some of the major [financial] houses on Wall Street."

    Mr. Obama signed the bill in Washington's Ronald Reagan building, named for a president who championed business deregulation.   

    You May Like

    US Leaders Who Served in Vietnam War Look Back and Ahead

    In New York Times opinion piece, Secretary of State John Kerry, Senator John McCain and former Senator Bob Kerrey say as US strengthens relations with Vietnam, it is important to remember lessons learned from war

    Who Are US Allies in Fight Against Islamic State?

    There is little but opportunism keeping coalition together analysts warn — SDFs Arab militias are not united even among themselves, frequently squabble and don’t share Kurds' vision for post-Assad Syria

    Learning Foreign Language Helps US Soldiers Bridge Culture Gap

    Effective interaction with local populations part of everyday curriculum at Monterey, California, Defense Language Institute

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora