The US House of Representatives took a major step forward in restoring confidence in the future of the American economy, when it passed by a vote of 223-202 a bill establishing the greatest set of changes to the banking regulatory system since the 1930s.
The purpose of the legislation is to prevent a future collapse of the economy similar to what happened in 2008. But it also sets up a new Consumer Financial Protection Agency to regulate credit cards, mortgages, and other financial products, and give consumers easier understood contract language and information, so as to prevent them from becoming victims of corporate manipulation.
Additionally, the government would have the power to break up companies that have become too large and threaten the stability of the financial system. This would address the argument that some banks or insurance companies are “too large to fail.”
The problem, however, is that the Senate is working much slower on this legislation, and also, the Republican party is again stonewalling support of this essential legislation. So the first battle has been won for consumers, but it is far from certain that this initiative will succeed all the way to legislation signed by President Obama.