The House of Representatives passed a sweeping overhaul of the nation’s financial system Wednesday by a vote of 237 to 192.
The bill, formulated in response to the financial crisis of 2008, would increase federal regulation over banks and end certain practices that proponents felt exacerbated the credit crisis. Supporters say the bill ends the idea that some large financial firms are “too big to fail” and sets up an orderly system to wind down collapsing companies.
Critics claim the bill creates a large new federal bureaucracy and does not address the fundamental sources of the financial crisis. They note that the bill does not deal with Government Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac. Opponents say that these two agencies helped create the financial crisis and continue to receive government bailout funds. Democrats say those enterprises will be dealt with in future legislation.
The bill now heads to the Senate, which is not expected to take up the measure until after next week’s July 4th recess.