Although that sounds like common sense - it will either work, or it won't, it's actually not just that simple.
The bill is created in order to avoid the collapse we saw near the end of 2008. It gives the Federal Reserve Bank more power, the SEC more power, and brings the government into the industry more and more than ever before.
The reform bill will create more stringent rules for hedge funds and derivatives, hopefully helping avoid the collapse that was felt after the Credit Default Swaps brought down Lehman Brothers.
All of this is fine and dandy, but will this help or hurt the American way of life? After all, we were built on capitalism and free markets. If the government puts their hands into the financial markets, what will that mean for venture capitalism, investments, and pure American ingenuity?
Creative genius is what creates growth, and many of those who have great ideas that they can build into successful companies are not financial types. Having to sort through governmental red tape every step of the way to get an idea financed could squelch this type of growth.
On the other hand, the consumer needs to be protected. Banks and investment firms can afford expensive lawyers to give them advice and how to stay out of legal trouble, where the average consumer can't afford advice on how to not get taken advantage of. Having regulations in place to ensure the consumer is protected could go a long way in keeping the markets from collapse.
References: New York Times