We all know that passing the UNEMPLOYMENT EXTENSION BILL is something that likely won't happen this week. The measure has been voted on twice, and Democrats and Republicans are in a stalemate.
Could the same happen with the Financial Overhaul Bill?
Let's start with the basic premise behind the bill. The financial system in America is delicate. The same is true around the world, which is why the G20 SUMMIT DISCUSSED WORLD ECONOMIC POLICY. In the United States, legislation is needed so that taxpayers don't have to keep bailing out big banks.
Law makers could have either shrank financial institutions so that individually no establishment was "too big to fail" or made rules aimed at preventing failure.
Even though we all know that "rules were meant to be broken" our lawmakers chose to try to enact rules.
Chopping up risky financial institutions could have been wiser, but maybe perhaps some legislation is better than no legislation.
The legislation is 2,000 pages, and will touch the entire financial industry from payday lenders to Wall Street's largest banks. It includes provisions on banks having a larger cushion in the event of a failure. It also limits investments in private equity firms.
It could take years for many of the rules in the legislation to take place. It's questionable whether or not the bill will pass this week in time for Obama to sign it before the Independence Day holiday. We will just have to see how the Senate reacts, especially given that the minds of many will be on remembering their late colleague, and also on the unemployment situation impacting their constituents.
