Wall Street reform compromise passes the Senate, will go to president for signature

Sen. Chris Dodd argues in favor of the Wall Street Reform bill moments before the Senate voted to pass the legislation. Photo Credit: CSPAN2

The U.S. Senate voted Thursday to approve an historic regulatory overhaul of Wall Street, concluding a week of debate in that chamber and pushing the Frank-Dodd financial reform bill one step closer to becoming law.

The Wall Street Reform and Consumer Protection Act, a compromise bill that passed the House on June 30, was passed in the Senate by a vote of 60-39.

The bill will go to President Barack Obama’s desk for final approval, where it is widely expected to be signed into law.

Several provisions in the bill will have a direct effect on notable Chicago businesses.  CME Group Inc, one of the world’s largest regulated derivatives marketplaces, stands to benefit from a portion of Frank-Dodd that will require many currently unregulated derivatives to be traded on exchanges like the CME.

“We’re going to bring derivatives markets that operate in the darkness out into the light,” said Senate Majority Leader Harry Reid shortly before the cloture vote Thursday morning.

In a statement, the CME Group said it “supports lawmakers’ efforts to reduce systemic risks in financial markets.”

In addition to new derivatives regulation, the bill will create several new entities, including a new 10-member Finance Services Oversight Council to watch for market failures, and a Consumer Financial Protection Bureau to be housed within the Federal Reserve.

The Federal Reserve will also receive new powers to oversee non-bank institutions in order to break up companies that pose systemic threats to the economy.

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