Senate passes cloture on financial reform bill

The Senate voted on and passed a motion for cloture on the Restoring American Financial Stability Act of 2010. After failing to gather the necessary votes yesterday with a vote of 57-42, the motion passed today with the minimum requirements to limit debate with a 60-40 vote. The bill, which is intended to promote financial stability in the marketplace by improving accountability and transparency in the financial system, ending ‘‘too big to fail’’, protecting the American taxpayer by ending bailouts, and protecting consumers from abusive financial services practices, is now limited to 30 hours of debate in the Senate with which to dispense any outstanding amendments. If the bill passes the Senate it will still need to be reconciled with the House version of the bill. One of the largest issues that will need to be resolved involves the provision written by Senator Blanche Lincoln, (D-Ark.), that would force some banks to spin off some of their most lucrative derivatives business into separate subsidiaries. The provision would bar banks from trading swaps, a type of derivative.

Here are additional stories on the vote:

Bill to Overhaul Financial Rules Clears Hurdle in Senate Vote, New York Times
Senate Votes to End Debate on Bank Reform Bill, MarketWatch

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