US Congress passes sweeping financial reform bill

The United States Congress has voted to pass a Wall Street reform bill that will “bring greater economic security to families and businesses across the country”, US President Barack Obama has announced.

The bill, which even garnered three votes from opposition Republican senators, will crack down on abusive practices and unscrupulous mortgage lenders, Obama said.

It will ensure all Americans who apply for a loan are provided with clear and concise information, which will prevent Americans from being duped into fees and loans they can’t afford and ensure that every American receives a free credit score if they are denied a loan or insurance because of that score, he said.

The reform should prevent any further taxpayer funded bailouts such as those seen during the financial crisis by enabling the Government to wind down a large financial institution without endangering the broader economy, and remove the perception that any firm is ‘too big to fail’, as was the case with Lehman Brothers and AIG.

Shareholders will have a greater say on the pay of chief executives and help change the incentives that encouraged so much reckless risk-taking in the past, Obama said.

“All told, this reform puts in place the strongest consumer financial protections in history, and it creates a new consumer watchdog to enforce those protections,” he said.