Senate Panel OKs Wall Street Reform Bill

A key banking panel took only minutes Monday to approve a sweeping regulatory reform measure aimed at warding off future collapses in the financial system.

With no debate or discussion the Senate Banking Committee voted 13-10 in favor of the bill put forth by panel chairman Sen. Christopher Dodd, D-Conn., moving it to the full Senate just after Dodd gaveled the hearing to order at 5 p.m. ET.

However, Dodd and the ranking Republican on the panel, Sen. Richard Shelby, R-Ala., agreed they have a long road ahead, and plan to work together to find a compromise that draws GOP support before the bill before hits the Senate floor.

“This is going to take more work, obviously, we’re not there yet,” Dodd said in a press conference after the hearing. “This allows us to buy some time to work on the product we need to present to our colleagues as a whole.”

Dodd’s proposal would create a new consumer regulator housed inside the Federal Reserve to ensure consumers get a fair shake with mortgages and credit cards. It would also push banks and financial firms to strengthen capital cushions and create a new process for taking down giant failing companies and preventing future Wall Street bailouts.
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