Obama signs financial regulation reform bill (2)

The new law requests transactions of risky derivatives that have been out of the sight of regulators to be moved to more transparent exchanges and conducted through independent clearinghouses.

Obama also promised that "the American people will never again be asked to foot the bill for Wall Street's mistakes."

"There will be no more taxpayer-funded bailouts. If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy. And there will be new rules to make clear that no firm is somehow protected because it is 'too big to fail,' so that we don't have another AIG."

The new measure gives the government new powers to break up companies that threaten the economy. Large, failing financial institutions would be liquidated and the costs assessed on their surviving peers.

The financial regulation bill represents another legislative triumph of Congressional Democrats along with the passage of economic stimulus package and healthcare reform bill, but its real impact might not be felt for years.


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