Obama signs Wall Street reform bill into law
Washington, Jul 22: US President Barack Obama signed the historic Restoring Financial Stability Act into law on Wednesday, Jul 21.
The law will create a new regulatory council to monitor financial institutions in order to prevent the companies from becoming 'too big to fail.'
It also gives the Federal Reserve, central banking system of the United States, the power to supervise the largest financial companies and report to the government any risks the firms may pose to the economy at large.
Before signing the bill US President told that the new regulations on Wall Street-type financial firms will not only help prevent another meltdown, but also establish the strongest consumer financial protections in history.
According to the new law as a protection against future recessions, the US government will have the ability to seize and liquidate failing financial institutions before their collapse.
The new law was considered as Obama"s second major legislative victory after the health reforms. The bill was passed over objections from Republicans who complained that it did not address the root problems that caused the meltdown.