The bill went through the US Senate by 59 votes to 39 and will now be merged with another finance bill already in Congress in order to become legislation.
On paper the bill looks set to answer a number of the major criticisms thrown at Wall Street by giving greater protection to consumers, reduce the level of risk that the larger institutions can take as well as reform the derivatives market.
There will be greater onus on individual borrowers to demonstrate that they can pay back any amount they borrow, across more than just mortgages as well. At the same time, a new watchdog agency under the auspices of the Federal Reserve will be introduced to prevent abuse in mortgage, auto and credit card lending.
The next stage is for the bill to go in front of a Congress/Senate committee where differences between the two sides will be debated and resolved. This House Financial Services Committee will be chaired by democrat Barney Frank who has said he expects Obama to sign this bill before the Fourth of July.
