Senate votes 60-39 to send overhaul of financial industry rules to Obama

WASHINGTON -- The Senate last week completed and sent to President Barack Obama the most far-reaching overhaul of financial industry rules since the Great Depression.

Senators voted 60-39 for final passage of legislation that has been in the works since 2008, when the government intervened with a $700 billion rescue bill to steady teetering banks and finance houses.

The president plans to sign the bill into law.

Among a number of changes, the impending law gives the government new powers to acquire and shut down large financial institutions whose collapse would otherwise ripple through the economy.

It also establishes a new federal bureau to shield consumers from abuses in mortgage and credit card lending.

Also, it imposes new rules on trading in derivatives, complex securities that had grown largely unregulated into a $600 trillion market.

The bill was passed with votes from 57 Democrats and three Republican senators: Scott Brown of Massachusetts, and Olympia Snowe and Susan Collins of Maine.

The votes in opposition were cast by Republicans and one Democrat, Russ Feingold of Wisconsin.

Supporters said the bill would help restore confidence in the financial system.

Critics called it another example of a growing and intrusive federal government, saying it would stifle growth and kill jobs.

Sen. Harry Reid, D-Nev., voted for the bill. Sen. John Ensign, R-Nev., voted against it.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760.