Obama Signs Financial Reform

Wednesday, July 21, 2010 - 2:19pm

New bill designed to protect consumers, prevent another financial collapse.

President Obama has signed into law a bill that he says will create the strongest consumer financial protections in history.

"Because of this law the American people will never be asked again to foot the bill for Wall Street's mistakes," Mr. Obama said.

The legislation gives the government the power to intervene when companies pose a threat to the economy and creates new oversight.

The reforms were passed mostly by Democrats, but had some crossover support from Republicans.

Still, the majority of Republicans say the new law only adds to more government intrusion for bankers, businesses and consumers.

"When you cut through all the talking points about what financial regulation will do, the practical real-world effect of this bill in the near term will be job loss," said Senate Minority Leader Mitch McConnell.

The biggest change for Americans is a new independent Consumer Protection Bureau that will monitor everything from mortgages to credit cards and student loans.

Consumers will also have more power to keep watch over their own finances with more access to their credit score.

The president still has to nominate a director to head the new consumer protection agency, which means a potential new fight with Republicans.

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