Financial Reform Passes Senate

Posted in Politics and Policy at 5:21 pm

It passed the Senate 60-39, with the President expected to sign it as early as tomorrow.

Finance Reform Passes

For some reason, Baseline Scenario is hailing it as landmark and comparing it to the Sherman Antitrust Act, despite their earlier criticism.

I still rate it a C-, though it’s certainly better than doing nothing.


  1. liberal said,

    07.16.10 at 6:41 am

    I was arguing about the effectiveness of the finreg law over at a non-finance, non-economics blog.

    IMHO the key things that need to be dealt with are:
    (1) moral hazard
    (2) complexity (mainly of institutions, but also of products)

    I don’t see that the bill really does all that much re those things. These other guys were arguing that the bill has resolution authority and mandates exchanges for derivatives. Based on posts at Naked Capitalism, I don’t have that much faith in the latter. As for res auth, it’s good in abstract, but how the hell would US Gov resolved Citi in the past crisis, even if it wanted to?

    My impression—I’m hardly an expert and haven’t had time to follow all the details—is that the part of the bill with the most promise is the consumer protection stuff. Otherwise, weak tea.

  2. liberal said,

    08.06.10 at 10:19 am

    C-: I just glanced at a Matt Taibbi article in _Rolling Stone_ linked by Yves Smith. I think MT gave it a C- also…

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