At 11:50 am Eastern time, on July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. It is a historic bill that will eventually change the way the financial services industry serves the country.
At a ceremony in the Ronald Reagan Building in Washington DC, the President spoke about the route the bill took to become law: “For the last year, Chairmen Barney Frank and Chris Dodd have worked day and night to bring about reform. I’m profoundly grateful to them. I also want to express my appreciation to Senator Harry Reid and Speaker Nancy Pelosi for their leadership. Passing this bill was no easy task. To get there, we had to overcome the furious lobbying of an array of powerful interest groups, and a partisan minority determined to block change. The Members here today, both on stage and in the audience, have done a great service in devoting so much time and expertise to this effort. I also want to thank the three Republican Senators who put partisanship aside, judged this bill on the merits, and voted for reform.”
Much of what the bill outlines must be studied and implemented by regulators and agencies of the government, including new ones formed by the bill’s passage, such as the Financial Stability Oversight Council and Bureau of Consumer Protection. The Securities and Exchange Commission alone will have 124 new actions to implement, including studies, rulemakings and reports, according to SIFMA, while the Federal Reserve Board will have 75 actions; Commodity Futures Trading Association, 55; and the Federal Deposit Insurance Corporation, 49.
President Obama added this before he signed the bill: “The financial industry is central to our nation’s ability to grow, prosper, compete, and innovate. There are a lot of banks that understand and fulfill this vital role, and a lot of bankers who want to do right by their customers.”
The President added these excerpted remarks:
“And with this law, ordinary investors–like seniors and folks saving for retirement–will be able to receive more information about the costs and risks of mutual funds and other investment products, so that they can better make financial decisions that work for them.”
“…because of this law, 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. Period. 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.”