27 moderate Democrats joined every present Republican in voting against H.R. 4173, with Republicans repeatedly blasting the legislation as one that will result in job losses and a permanent bailout for failing institutions.
On the other hand, the Democratic majority touted the package of bills as an end to unchecked greed, financial recklessness and regulatory shortcomings, and President Obama stated that the House’s reform efforts “…will create clear rules of the road, consistent and systematic enforcement of those rules, and a stronger, more stable financial system with better protections for consumers and investors.
Among its many provisions, highlights of H.R. 4173 include the creation of a Consumer Financial Protection Agency (CFPA), new regulation of derivatives markets, systemic risk regulation measures, new restrictions on credit rating agencies, the creation of a Federal Insurance Office, and a hedge fund registration requirement.
Throughout its week-long debate on the House floor, Democrats beat back attempts to strike provisions from H.R. 4173 that in their eyes would have weakened the underlying legislation. Most notably, the House rejected an amendment on Friday that would have removed the CFPA creation language and instead created a council of financial regulators.
Financial regulatory reform efforts now move to the Senate, where progress has stalled due to both the crowded end-of-year legislative calendar and the recent announcement by Banking, Housing and Urban Affairs Committee Chairman Christopher Dodd (D-CT) that his committee would not complete work on the measure before the end of 2009.
We will continue to monitor this important process when consideration resumes in the Senate, and will provide updates on InsureReinsure.com.