Senate OKs 'too big to fail' bank amendment

I was very pleased when I read this article. With many months gone by since the big government bailout I was happy to see some new measures put into effect with all the talk and no action. On Wednesday may 5 the senate voted 93-5 approving a bipartisan deal to unwind big financial firms that are considered too big to fail. This deal drops a tax on banks that would have funded fifty billion dollars that regulators could have picked into to aid failing banks. The new plan calls for banks to be taxed so they pay for banks after a collapse and not the taxpayers.

This makes me happy because that was my biggest concern. I wanted the banks and big corporations to pay not the middle class man. An amendment that I am particularly fond of was also purposed by Senator Shelby which would impose stricter rules already in place to keep managers and bank directors who have a history of recklessness from obtaining future jobs in the financial sector. This shows me that we are also trying to prevent another collapse instead of just putting a band aid over it.
Republicans had a couple concerns such as that the democrats have given regulators to much discretion in paying back creditors. Another republican concern was that the bill did not do a sufficient job in reining in the emergency lending powers that both the Federal Reserve and the Federal Deposit of Insurance Corp. have to prop up banks in trouble.

There are talks of trying to tighten up some of the language in the bill and maybe amend a few things but I believe this is a giant a giant step in the right direction from what the market has been thru. Republicans and democrats will always differ but at least bill’s are being passed and something is being done instead of arguing. I am pleased and I think there is much more good to be done to clean up the mess.

http://money.cnn.com/2010/05/05/news/economy/Senate_Wall_Street_Reform/index.htm