Obama hails law as victory for consumers
BY JIM KUHNHENN, The Associated Press
WASHINGTON -- Reveling over a new milestone in his presidency, a triumphant Barack Obama on Wednesday signed into law the most sweeping overhaul of lending and high-finance rules since the Great Depression, adding safeguards for millions of consumers and aiming to restrain Wall Street excesses that could set off a new recession.
FINANCIAL OVERHAUL: President Barack Obama, left, points to U.S. Sen. Chris Dodd, D-Conn., center, and U.S. Rep. Barney Frank, D-Mass., right, after signing the much-debated and hotly contested financial overhaul bill into law in a ceremony in the Ronald Reagan Building in Washington on Wednesday.
AP photo
The president's signing ceremony capped nearly two years of intense and partisan debate over how to avoid a recurrence of the 2008 financial meltdown that buckled the U.S. economy and left sharp, lasting imprints on the nation's politics and in Americans' homes.
"Because of this law, the American people will never be asked again to foot the bill for Wall Street's mistakes," Obama said.
In a heated midterm election season that has dented his public support, Obama sought to put the complex law in pocketbook terms. Emphasizing provisions that guard borrowers from abusive lenders, he claimed "the strongest financial protections for consumers in the nation's history."
Not everyone agreed. Republicans portrayed the bill as a burden on small banks and the businesses that rely on them and argued that it will cost consumers and impede job growth.
Rep. Mike Pence of Indiana, a member of the House GOP leadership, on Wednesday joined House Minority Leader John Boehner of Ohio in calling for the law's repeal.
The law, passed despite nearly unanimous Republican opposition, attempts to catch up to a financial system that has sped ahead of outdated regulation and slackened rules that allowed banks, traders and others to take increased risks.
Wall Street's near-collapse, Obama said, "was a crisis born of a failure of responsibility from certain corners of Wall Street to the halls of power in Washington."
The new rules, however, are only at a midpoint. Banking and market regulators will have up to two years to write many of the new regulations required by the law, extending uncertainty and ushering in a new phase of lobbying by financial firms.
"Regulators will have to be vigilant," Obama said.
The president sought to quell public anger over the $700 billion bank rescue fund the government created at the height of the crisis to reassure the markets. While the infusion is credited with providing stability, the public recoiled at the idea of taxpayer money being used to help prop up huge banks.
The law gives regulators new authority to liquidate large, interconnected financial firms that are failing.
The law, however, does permit the Federal Deposit Insurance Corp. to borrow taxpayer money from the Treasury temporarily to help cover the costs of winding down a large firm. Other large banks would have to pay the Treasury back over time.
Firms have been poring over the massive bill, anxious to assess its most immediate impact. Credit rating firms, for instance, say they will no longer allow the issuers of debt-backed securities to put their ratings for them in public sale documents, wary of a provision in the law that makes it easier to sue ratings agencies.
The law assembles an influential council of regulators to be on the lookout for risks across the finance system. It also crates a powerful independent consumer financial protection bureau within the Federal Reserve to write and enforce new regulations covering lending and credit.
It places shadow financial markets that previously escaped the oversight of regulators under new scrutiny and gives the government new powers to break up companies that threaten the economy.
Major Wall Street banks have welcomed some provisions in the bill but have fiercely opposed others that would limit their banking business and cut into their profitability.
And Republicans have argued that the law will hurt rather than help people still reeling from the recession .
"Millions of Americans are struggling to find jobs, and yet all they see in Washington are Democrats passing massive bills that, at their core, seem to have one thing in common: more job loss," Minority Leader Mitch McConnell, R-Ky., said on the Senate floor Wednesday.
Thomas Donohue, the president and CEO of the U.S. Chamber of Commerce, called the law "a financial regulatory boondoggle."
The new law comes at a politically delicate time for the president. A growing number of business leaders describe his administration as antagonistic to their interests, and polls show the American public increasingly wary of his policy initiatives.
Eager to portray the law as one with broad appeal, the White House included some top bankers among those at the bill signing ceremony. They included Vikram Pandit, CEO of the financial giant Citigroup, and top executives from Bank of New York Mellon and Barclay's PLC. Noticeably absent, however, were JPMorgan Chase & Co. CEO Jamie Dimon, a past Obama backer, and Goldman Sachs Group Inc. CEO Lloyd Blankfein. Dimon has been vocal in his criticism of some provisions in the bill.
"The CEOs who opposed reform never expected to be invited to the bill signing, and not a single one has complained to the administration," Deputy Communications Director Jen Psaki wrote in a White House web log Wednesday.
Also in the audience were Maryland Vietnam veteran, Andrew Giordano, who was hit with bank overdraft fees, and Robin Fox, a Georgia teacher stung by retroactive interest rate increases on her credit card balance -- two issues the legislation aims to remedy.
Former Federal Reserve Chairman Paul Volcker and Elizabeth Warren, head of the panel assigned to oversee the bank bailout fund, also attended. Both have been instrumental in shaping parts of the bill.
Associated Press Business Writer Marcy Gordon contributed to this article.
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Copyright ©2010 MaineToday Media, Inc.
37 COMMENTS
Gary from Rockwood said...
Also noticeably absent is anything in this bill that deals with Fannie & Freddie, which continue to vacuum in taxpayer dollars.
July 22, 2010 at 5:30 AM Report abuse
Anymouse said...
Don't worry gary, that part of the banking regs will be corrected later when he can find a way to turn it into a useful crisis. Can't use up all the problems at once, gotta have something left to keep the public busy with while he quietly continues his hope and change.
July 22, 2010 at 7:29 AM Report abuse
said...
Rockhead doesn't know what he's talking about but will spew the extreme-right lies nonetheless.
July 22, 2010 at 7:32 AM Report abuse
rogerthat said...
In a rare moment of honesty, Sen. Dodd said in an interview on CNBC that there is nothing in this bill that would have prevented this financial crisis and he doesn't believe it will prevent the next crisis. He also said we won't know what the effects of the bill will be until it is passed and implemented. So why the rush to force through this bill? As with everything the Democrats have done recently, it's a power grab by the government in their mission to Europeanize the America.
July 22, 2010 at 7:43 AM Report abuse
Ted said...
This bill does nothing to attack the problem and the real cause of the financial collapse in this country and that being Fanny and Freddy. This is the worse consumer bill ever signed into law. READ IT PEOPLE! This bill is about nationalization of the financial system in this country, written by what I think are the two of the biggest thieves in America Chris Dodd and Barney Frank.
July 22, 2010 at 8:01 AM Report abuse
said...
It's a good thing that only the extereme right-wingnuts are congregated in one place and have made arrangements to attack the left at whatever cost; while the rest of normal society goes on and is appreciative of what Obama has done to clean up the mess created by the GOP.
July 22, 2010 at 8:24 AM Report abuse
1wouldthink said...
Cap & Trade will be next, followed by immigration reform (amnesty). Keeping in mind that after the DimWits and many RINO's take a mid-term hit and this Administration of Hope & Change becomes a Lame Duck minority..the magic pen will become a Jessie James side arm. Then all you blind-sided Libs will blame Bush for it as usual instead of "where thebuck stops".
July 22, 2010 at 9:12 AM Report abuse
said...
It is incredible that many Americans cannot see what is staring them in the face - that Bush/Cheney nearly ruined the country, and that their Republican party has been the most obstructionist opposition in the history of the US. Despite that Obama has managed a significant economic stimulus package, a major health care reform, and now a financial sector reform, while facing an environment of crisis like no other president has seen. Two major wars, continuing Middle East problems mainly caused by that ally - Israel; huge deficits caused by Buh's tax cuts for the wealthy combined with the expense of his military adventurism; and an environmental disaster in the Gulf caused by Bush/Cheney's pet industry, oil, and their ignoring of existing regulations; and job losses created by the banks and the corporatocracy which continues to persue cheap labour globally.
July 22, 2010 at 12:09 PM Report abuse
said...
Some foolish people just continue to blame Obama because of their personal biases, and refuse to recognize the totality of all this. A lesser man than Obama would have already either had a nervous breakdown or a significant heart attack. What is clear from all this is that the system needs major change and reform. Two actions are imperative: 1. impose term limits on all elected offices and 2. federally finance election campaigns which should be limited to 30 days and a fixed, reasonable budget. The power and influence of the corporatocracy and its lobbyists must be curtailed.
July 22, 2010 at 12:10 PM Report abuse
heyyou said...
“Some foolish people just continue to blame Obama because of their personal biases”----No we blame his because is in charge and had caused more problem and Bush ever dreamed. According to polls anyone running can beat him. Obama has failed and governed against the will of the people he swore to serve.
July 22, 2010 at 2:26 PM Report abuse
heyyou said...
1. impose term limits on all elected offices and 2. federally finance election campaigns which should be limited to 30 days and a fixed, reasonable budget.----------------- 1. We have term limits, we vote. 2. You are limiting freedom of speech.
July 22, 2010 at 2:29 PM Report abuse
Valdez Greene said...
Heyyou, you're saying that Obama "caused more problems than Bush ever dreamed"? Two wars, one completely unnecessary, not even reading the PDB warning of a terrorist attack being likely, and trashing the economy, those were just SOME of the things Bush did. Far as I recall, Obama has been attempting to CORRECT the failures of Bush. You merely prove that for some far right kooks, logic, reason, and facts mean nothing, it's all about your fetish for the name of a political party. That's sad and brands you as something less than a full participant in Democracy. Republican: We're clueless!
July 22, 2010 at 2:37 PM Report abuse
Valdez Greene said...
Failures of George W. Bush (in honor of Heyyou, who would like to deny reality but intelligent Americans won't let him cower in ignorance as a Republican): Consumers & Workers Limited Ability To Block Dangerous Imports FDA Enforcement Actions Way Down USDA Challenged Over Meat Safety Lack of Adequate Foreign Drug Oversight Problems in Oversight of Food Safety OSHA’s Laissez-Faire Attitude FDA Failure To Ensure Drug Safety Failure To Protect Consumers From Unsafe Products Oversight Collapse Leads To Mine Safety Issues Agricultural Quarantine Inspection Stumbles Eroding Budget Erodes Consumer Safety Lack of Quorum at the CPSC
July 22, 2010 at 2:40 PM Report abuse
valdez Greene said...
Failures of George W. Bush (in honor of Heyyou, who would like to deny reality but intelligent Americans won't let him cower in ignorance as a Republican): Contracting & Workforce A Failure of Whistleblower Protection Labor Relations Authority: Low Morale, Backlogged Cases Contractors Failing Troops in Iraq and Afghanistan Human Capital Issues Plague Government Surge in Outsourcing Creates Problems in Performance, Oversight Chronic Understaffing at the EEOC Education No Child Left Behind: A Few Bumps in the Road Reading First: Scandalous and Ineffective Student Loan Scandal Costs Students
July 22, 2010 at 2:41 PM Report abuse
Valdez Greene said...
Failures of George W. Bush (in honor of Heyyou, who would like to deny reality but intelligent Americans won't let him cower in ignorance as a Republican): Elections Paralysis at the Federal Election Commission “McCain-Feingold” Fails To Solve Campaign Finance Problem Election Assistance Commission Has Not Met Mandates Emergency Management Hurricanes Expose FEMA Woes FEMA Trailers Filled With Formaldehyde We Can’t Afford Another Flood SBA Emergency Assistance Failed for Katrina Flood “Protection” in New Orleans
July 22, 2010 at 2:42 PM Report abuse
Valdez Greene said...
Failures of George W. Bush (in honor of Heyyou, who would like to deny reality but intelligent Americans won't let him cower in ignorance as a Republican): Energy No Robust, Sustained Alternative Energy Policy Foreign Oil Dependence Has Grown Refinery Bottleneck Puts Squeeze on Gasoline Supply Move to a 21st Century Electricity Grid Is Stalled Entitlements Unsustainable Medicare Spending Failure To Reform Social Security Social Security Disability Backlogs
July 22, 2010 at 2:43 PM Report abuse
Valdez Greene said...
Failures of George W. Bush (in honor of Heyyou, who would like to deny reality but intelligent Americans won't let him cower in ignorance as a Republican): Environment Climate Change: Hide the Assessment Failure To Advance Climate Change Policy EPA Deprives Public of Information on Toxics Science Policy Politicized Politicization at Department of Interior EPA Stalls on Perchlorate Regulation Mountaintop Coal Mining Alters Appalachia EPA and OMB Slow Toxic Chemical Risk Studies Scandal, Incompetence at Minerals Management Service EPA Misleads on Air Quality After 9/11 Attacks EPA Ignores Advisers on Particulate Matter Standards Everglade Restoration a Man-Made Disaster Superfund Program Loses Funding, Momentum Toxic Mercury From Coal Plants Unregulated Nuclear Waste Problem Unsolved EPA Fails To Put Children First Failure To Launch: Satellite Delays EPA’s Free Pass for Aging Power Plant Emissions
July 22, 2010 at 2:43 PM Report abuse
Valdez Greene said...
Failures of George W. Bush that Heyyou can't accept: Finance Shaky Start for Troubled Asset Relief Program Skyrocketing Deficit Oversight Fails To Keep Pace With a Changed Market Lax Oversight of Fannie Mae and Freddie Mac SEC Allows Investment Banks To Go Unregulated More Corporations Pay Less in Taxes Audit Rates of Rich Fall, Audits of Poor Spike Lack of Regs Fueled Accounting Scandal U.S. Companies Hiding Revenue Offshore Mismanagement and Cronyism at HUD Health Medicare Fraud Out of Control 45 Million Americans Without Health Insurance
July 22, 2010 at 2:44 PM Report abuse
Valdez Greene said...
Failures of George W. Bush that Heyyou can't accept: Justice & Security Too Close to the Edge on Torture CIA Renditions Draw Controversy Politicization of Department of Justice Failure To Protect Sensitive Technology Arbitrary Detention at Guantanamo Osama bin Laden Still at Large Lack of Progress on Immigration Reform WMD Nonproliferation Needs More Attention National Security Agency Mismanages Info Technology $30 Billion Virtual Border Fence Faces Problems First Responders Still Can’t Communicate FBI Abuses Power To Request Personal Information Agencies Failed To Share Intelligence on 9/11 Terrorists Pakistan Remains an Al Qaeda Haven FBI Failure To Create a Modern Computer Network Nuclear Sites Lack Adequate Security Losing the Battle for Hearts and Minds DHS Still Getting Up to Speed Terrorist Watch List Mismanaged Poor Retention of Counterterrorism Staff Inability To Track Foreign Visitors to U.S.
July 22, 2010 at 2:47 PM Report abuse
Valdez Greene said...
Are you getting even a slight clue about how clueless you really are, hah Heyyou? Wingnut??
July 22, 2010 at 2:48 PM Report abuse
Valdez Greene said...
Failures of George W. Bush that Heyyou would like to deny: Military False Premise for Going to War Abu Ghraib Prison Scandal Mismanagement at National Reconnaissance Office Poor Health Care for Veterans Failure To Regulate Security Contractors Pentagon Office’s Misleading Intelligence Military Failure To Secure Iraq After Invasion Lack of Armored Protection for Troops Pentagon’s Slow Adaptation to a War-footing Inadequate Planning for Post-Invasion Iraq Failure To Secure Weapons in Iraq Mismanagement of Major Weapons Acquisitions Veteran Disability Claims Languish Delay in Opening U.S. Embassy in Iraq Air Force Failure To Maintain Nuclear Weapons Accountability Taliban Resurgence in Afghanistan 190,000 Missing Weapons in Iraq
July 22, 2010 at 2:49 PM Report abuse
Valdez Greene said...
Failures of George W. Bush that Heyyou would like to deny: Other NASA Inspector General Lack of Oversight NASA’s Failure To Ensure Safety in Human Space Flight Massive Backlog at Patent Office Census 2010 Stumbles at the Starting Line FCC Chairman Martin Under Fire Transportation Failing To Modernize Air Traffic Control Human Fatigue in Transport Accidents Still Unaddressed Close Calls on the Runway FAA in the Dark on Maintenance Record Delays in Air Travel FAA Inspectors Cozy Up to Airlines Highway Funding Woes
July 22, 2010 at 2:49 PM Report abuse
Valdez Greene said...
Failures of George W. Bush that Heyyou would like to deny: White House Controversial Assertion of Executive Power Excessive Executive Secrecy Signing Statements Thwart Congressional Intent Vice President’s Office Exempts Itself From Information Safeguards Executive Office of the President “Loses” E-mails
July 22, 2010 at 2:51 PM Report abuse
Valdez Greene said...
In honor of Heyyou, who cannot accept the enormous failures of Bush and Republicans and who wants to return to the same approaches that nearly destroyed America! (wow, you're special Heyyou!): The Clinton administration departed with an unprecedented $127 billion budget surplus, but two prolonged wars and a plummeting economy under President Bush have left the country reeling with a record-setting $455 billion deficit for fiscal year 2008. At a hefty $12 billion per month during 2008, the war in Iraq is one factor that accounts for the runaway red ink. The overall jump in annual defense spending, which ballooned from $295 billion in 2000 to $547 billion in 2007, was another factor. Meanwhile, the rising cost of health care, the economic downturn, and the Bush administration’s 2001 tax cuts have compounded the problem. (Without the tax cuts, for example, the nation would have had a budget surplus as late as 2005.)
July 22, 2010 at 2:54 PM Report abuse
Valdez Greene said...
Just for Heyyou, who would like to DENY what George W. Bush and Republicans did to America: During Bush’s first year in office, the deficit stood at $32 billion; by 2002, the deficit had skyrocketed by nearly 1,000 percent to $317 billion. In historic terms, the deficit remains a comparatively modest 3.2 percent of gross domestic product — as opposed to the deficits of the mid-1980s, which hit a record 6 percent of GDP after President Reagan’s tax cuts. But that’s scant comfort for citizens who have watched record surpluses turn into historic deficits, with more bad news likely on the horizon. In September, Office of Management and Budget Director Jim Nussle blamed the deficit on “the slow economy and the bipartisan decision to enact a stimulus package.” The solution, said Nussle: growing the economy “by keeping spending in check.”
July 22, 2010 at 2:56 PM Report abuse
Valdez Greene said...
More for Heyyou, who wants to deny the damage done by George W. Bush and Republicans: Follow-up: In October 2008, the Congressional Budget Office estimated that the deficit for FY 2009 could reach up to $700 billion. But that was before the full impact of the slumping economy and the financial bailout became clear; now some experts say the deficit may rise to a staggering $1 trillion in 2009. That sort of deficit could reach a record-breaking 7 percent of GDP. And it could well constrain the scope of President-Elect Barack Obama’s ambitious agenda.
July 22, 2010 at 2:59 PM Report abuse
Valdez Greene said...
This is for Heyyou, who wishes to DENY what Bush and Republicans did to America: For many injured veterans — aging former soldiers as well as younger ones recently back from Iraq and Afghanistan — disability claims are a vital and necessary source of income. The Department of Veterans Affairs (VA), however, has long failed to process claims in a timely manner, forcing many vets to wait an average of six months for their claim to be processed, and as long as two years to wait for an appeal. The Government Accountability Office (GAO) reported a growing backlog of claims and lengthy processing times in 2001, and the problem has persisted. By February 2007, the backlog had grown to almost 400,000 — more than 130,000 of which had exceeded the VA’s 160-day goal to process a claim.
July 22, 2010 at 3:02 PM Report abuse
said...
Ohhhh, isn't that cute, the right wing editors too off the list of Bush failures! Nice!
July 22, 2010 at 3:05 PM Report abuse
longpondloon said...
valdez greene.....get a life....please don't tell me this is it...
July 22, 2010 at 3:27 PM Report abuse
heyyou said...
Obama's gift to the working man. The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%. At the higher end, the 33% bracket is pushed to 36% and the 35% bracket becomes 39.6%.
July 22, 2010 at 3:37 PM Report abuse
heyyou said...
Well I agree Valdez, I do disagree with you. I did not read your post, but who does. But let me guess, it was full of name calling and silly complaints. Obama is the worst president in history, in 18 months all he is done is raise taxes on the middle class and pass laws we the people did not want. Nice job, I like the part where my health insurance will be taxed. I would take 8 more years of Bush if Obama left now. Please note the dem had controlled the budget for years before Obama showed up, I just know you failed to state that fact. And ha ah your read mine.
July 22, 2010 at 3:47 PM Report abuse
heyyou said...
Dont worry longpondloon it is a cut and paste from The Center for Public Integrity it took just a min.
July 22, 2010 at 4:04 PM Report abuse
said...
Heyyou, everytime you over your mouth you're offering something that is false. Sorry wingnut, Obama didn't raise taxes. You can't get ANYTHING right!
July 22, 2010 at 4:19 PM Report abuse
Valdez Greene said...
The denial of Republicans is enormous and explains how they can be so intellectually dishonest, because pretty much they're completely clueless as to the facts. Again, Heyyou opened his mouth and stepped in it. How is it that Democrats "controlled" the budget for Years before Obama took office? The PRESIDENT of the U.S. proposes the Federal Budget, which would be Bush before Obama, or didn't you know that you ignorant wingnut?! Honestly, people like you are REPUGNANT for your willful IGNORANCE! Republican: We're ignorant and proud of it!
July 22, 2010 at 4:23 PM Report abuse
Valdez Greene said...
New GOP ads recycle old, debunked claims about Obama's tax plan ...(repeated by knuckle dragers here like Heyyou) ... Republicans are misrepresenting Obama's tax proposals right down to the bitter end. New radio ads from the McCain campaign and a TV spot from the pro-Republican group Let Freedom Ring are targeting voters nationwide with some of the same tax deceptions we've been hearing all fall, rolled in a bundle and flung through the airwaves. One of the radio ads features Hank Williams Jr., the other Florida Gov. Charlie Crist. But new packaging doesn't make the charges any less false. .... SO ONCE AGAIN WE SEE THAT REPUBLICANS MISLEAD, MISLEAD, AND LIE! THEY MISLEAD BECAUSE THEY CAN'T OWN UP TO ALL THEY EVER ACTUALLY DELIVER, WHICH IS FAILURE!
July 22, 2010 at 4:27 PM Report abuse
Valdez Greene said...
This is the Republican playbook for the 2010 midterm elections. It is virtually identical to the one they used in 1994 to retake Congress and hamstring a reformer president. This playbook consists of 5 distinct steps: Step 1: Avoid Responsibility for GOP Failures Step 2: Increase Negativity Step 3: “Throw the Bums Out!” Step 4: Make Formal Pledge of Grandiose Promises Step 5: Retake Congress
July 22, 2010 at 4:59 PM Report abuse
said...
this has been pointed out to the right wing dolts like heyyou- too many times to count-- lack of comprehension Federal Reserve Board data show that: More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions. Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.
July 22, 2010 at 6:15 PM Report abuse