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FinReg finale

I've not had the time to dig into the financial regulation bill that emerged from conference committee this morning as deeply as I'd like, and I'll try to rectify that Monday. For now, Pat Garofalo's chart comparing the House, Senate and final versions of the bill is a good resource. I'm very glad to see that derivatives regulations remained strong, and surprised that Blanche Lincoln's spin-off idea made the cut. I'm also glad, and surprised, to see that a semi-robust Volcker rule survived.

The big disappointment is that capital requirements, which I think to be the most important part of the bill, didn't end up in the final legislation. Instead, that's left to regulators, although it's hard to imagine that anything in the bill will stop regulators from getting caught up in bubble-mania. Still, this is an ambitious, thoughtful piece of legislation that addresses some of the system's worst failings (like the unregulated derivatives market) and adds a raft of protections. The work of financial regulation is trying to draw out the time between the last crisis and the next one, and this bill does seem likely to do that.

By Ezra Klein  |  June 25, 2010; 5:45 PM ET
 
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Comments

Hi Ezra I look forward to your commentary on Fin Reg. I am getting depressed over our congresses run to the right. I hope there is something good in Fin Reg. Dylan Ratigan seems to thing it is almost useless. I watch you on Rachel and Keith. Thanks for keeping the left. I was a vietnam protestor in my college days and am glad to see younger people sticking with a progressive adgenda. Thanks Dana Cline MS Chem. UVA

Posted by: dscline99 | June 25, 2010 7:20 PM | Report abuse

What happened with Franken's proposal on the ratings agencies? Did that get removed entirely?

Posted by: marde1 | June 25, 2010 8:28 PM | Report abuse

"The big disappointment is that capital requirements, which I think to be the most important part of the bill, didn't end up in the final legislation."

So, FinReg's killer app got killed. Imagine that.

Posted by: slag | June 25, 2010 10:16 PM | Report abuse

Does this mean you'll stop saying "FinReg" now?

It would be nice to return to literacy.

Posted by: pj_camp | June 26, 2010 10:45 AM | Report abuse

"The big disappointment is that capital requirements, which I think to be the most important part of the bill, didn't end up in the final legislation. "

They just wanted to make sure that anything that would prevent this from all happening again in 15 years is killed. Because, you know . . . economic catastrophes are always so great. During the lead-up. Yeah, the bust after the boom is incredibly destructive, but it's such a party on the way up . . .

Sheesh.

Posted by: Kevin_Willis | June 26, 2010 11:34 PM | Report abuse

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