President Obama Signs Landmark Financial Reform Legislation

Washington - On Wednesday, President Obama signed into law a landmark piece of legislation that many are calling the most aggressive financial reform since the Great Depression and President Roosevelt’s subsequent New Deal.

The law includes provisions to increase consumer protections by creating a new government agency to guard consumers in financial transactions. The law also calls for the creation of a council of federal regulators to coordinate the detection of risks to the financial system which will be led by the Secretary of the Treasury. Aimed at rectifying the practices that put into play the financial trouble of 2008, the legislation has taken two years and a great deal of political capital on its way to becoming law. Still supporters relished their moment. House Majority Leader Steny H. Hoyer (D-MD) released the following statement regarding the signing, “Today, Democrats put in place common sense rules to protect consumers and our economy. We also have put an end to the excesses of Wall Street, ensuring taxpayers will never again be on the hook to bailout big banks.” His sentiments were similar to those of the President, who said, "Because of this law, the American people will never again be asked to foot the bill for Wall Street's mistakes. There will be no more taxpayer-funded bailouts. Period." A far cry from bi-partisan, the bill received the support of only three Republican U.S. Senators – Susan Collins and Olympia Snowe, both of Maine, and Scott Brown of Massachusetts. Advocates of the law assert that it will create jobs, while detractors remain unconvinced. Among them is U.S. Chamber of Commerce President and CEO Tom Donohue who issued a statement on the reform measure saying, “Such a broad, sweeping bill epitomizes a law with unintended consequences that creates more uncertainty for American businesses. This law is like adding new paint on an old car; it’s still not going to run at the pace and with the agility that is currently demanded.” Donohue went on to say, “As we move into the next phase of debate, the Chamber will work within the regulatory process to highlight the unintended burdens this law will have on businesses and their workers. This includes more than 500 required regulatory rulemakings, 81 studies, and 93 Congressional reports—according to a recent Chamber study. As for how this will affect every day Americans and American businesses is still up for debate. And the debate may continue for years. It will likely take at least a year for regulators to write new rules to comply with the new law and then implement them. According to the New York Times, the first measurable result of the law may become visible in about two years, when the deadline for the consumer regulators to create a simplified disclosure form for mortgage loans is reached. During that time, the President must also nominate a director to the independent consumer protection bureau, an agency whose creation angered Republicans in what they saw as an overreach of government power into private businesses.