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Obama hails "breakthrough" as US financial reform set for passage

Other News Materials 13 July 2010 23:56 (UTC +04:00)
The biggest overhaul of US financial regulation since the 1930s Great Depression is poised to be approved by the Senate later this week, the final step in a year-long struggle, dpa reported.
Obama hails "breakthrough" as US financial reform set for passage

The biggest overhaul of US financial regulation since the 1930s Great Depression is poised to be approved by the Senate later this week, the final step in a year-long struggle, dpa reported.

The last piece of the puzzle came into place Tuesday as a conservative Democratic senator, Ben Nelson, declared he would back the bill. US President Barack Obama hailed the "breakthrough" that would allow him to sign the landmark bill as early as next week.

Nelson's announcement gave his Democratic Party the 60 votes it needs to get the measure past procedural hurdles in the 100-member Senate. He joins 56 other Democrats and three Republicans who have pledged to back the measure.

"What members of both parties realize is that we can't allow a financial crisis like this one that we just went through to happen again. This reform will prevent that from happening," Obama said in remarks from the White House.

The massive piece of legislation aims to extend government regulation to hedge funds and derivatives trading. It bestows new powers to wind down failing banks and creates a new consumer protection agency to guard against misleading financial products.

Passage by the Senate would mark the culmination of a year-long effort by Obama to pass legislation in the wake of the 2008 financial crisis that tipped the US and global economy into recession.

The final version of the legislation passed the US House of Representatives last month after weeks of wrangling between the two chambers of Congress on the final details. The Senate could now back the bill as early as Thursday.

"I urge the Senate to act quickly so that I can sign (the bill) into law next week," Obama said.

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