New regulations signed for US finance | WPN World People News

US president Barack Obama has now signed America’s new financial regulations into law.

The law, which passed with little Republican support after months of political wrangling, has proven to be one of the most difficult pieces of legislation to be promoted by the president.

The new regulations mean that if a large financial institution fails in the future, the law will provide for it to be wound down without endangering the economy.

The legislation also introduces new consumer protection, reduces the power of big banks, and stops credit card and lending firms from indulging in deceptive practices.

President Obama, in signing the law, said he hoped bankers, consumers and businesses would now be on the same page with the rules expected in financial transactions.

He said: "It is designed to make sure everyone follows the same set of rules so that firms compete on price and equality, not on tricks and not on traps. It demands accountability and responsibility from everyone. So unless your business model depends on cutting corners or bilking your customers, you've got nothing to fear from reform."

The bill, which was vehemently opposed by the financial services industry, has been described by the president as a necessary measure to prevent future economic disaster.

He said: "Our financial system only works when there are clear rules and basic safeguards that prevent abuse, that check excess, that ensure that it is more profitable to play by the rules than to game the system."

Most of the new rules won't take effect immediately.

Regulators will take months to study dozens of issues in the 2,300-page law before drafting the ultimate rules.

Source: Europe News.Net