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.
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
