Passed: House and Senate
Signed into law: Wednesday, July 21, 2010
Provides: greater consumer protection and control over lending institutions
Financial Reform became an obvious necessity when the out-of-control housing market bubble burst, with a domino effect on the over-extended financial market. Major profits came out of moving of money rather than through production of goods. Many of the largest financial institutions escaped death only through the $700 billion in TARP funding.
Usury was rampant, with varieties of “pay-day” loan institutions multiplying daily. Interest rates into the hundreds of percents have been common. The first control was on loans to military personnel, holding the rate to 36%, which is what has always been allowed for credit union loans and credit card interest. This seems to be sufficient, as credit unions have not required bail-outs.
Under this new law, large banks will have a new overseer agency within the Federal Reserve, and new guidelines will be devis