Financial Regulation: US Senate passes biggest, regulatory changes since the Great Depression

On Thursday, the US Senate plucked up its courage and passed its version of the controversial financial reform package. It is bold, brave and risky, but then again, tough times demand tough solutions.

This bill must now be reconciled with the House of Representatives’ version that has already been passed. But the margin of passage in the Senate – a 59 to 39 split that included some Republicans – is probably sufficient to ensure passage in the Senate of any joint-reconciled version.

This Senate vote means Congress is now poised to pass a broad expansion of government oversight of the increasingly complex (and increasingly murky) banking industry and financial markets. The legislation is designed to put measures in place to prevent a repeat of the 2008 financial meltdown. In addition, it simultaneously reshapes the varied roles of numerous federal agencies, and vastly empowers the Federal Reserve Bank, in an attempt to predict and contain future debacles – especially since the current regimen didn’t see that most recent crisis coming, until it hit.

Note EU-Digest: Another step in the right direction and a plus for President Obama

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