Obama signs Wall Street financial reform into law

U S president Barack Obama yesterday signed a sweeping financial reform bill into law, a regulatory measure induced by the collapse of Lehman Brothers and Bear Stearns two years ago that triggered the world's worst ever financial crisis since the Great Depression.

The landmark legislation called 'Dodd-Frank Wall Street Reform and Consumer Protection Act' is intended to protect and empower American consumers with the strongest consumer protections ever, increase transparency in financial dealings and end taxpayer bailouts once and for all.

 The president said, ''American people will never again be asked to foot the bill for Wall Street's mistakes. There will be no more taxpayer-funded bailouts.''

The new legislation empowers the government to wind down large financial institutions that could fail or threaten the economy. It creates a 'Bureau of Consumer Finance Protection' and controls the bank's power to trade in risky financial instruments.

In addition, the new law regulates credit and debit card transaction charges, unfair rate hikes and overdraft fees. Mortgage contracts will be made simpler and more understandable to customers and students who take college loans will be provided clear and concise information about their obligations.

In order to assure confidence in the Wall Street and among financial institutions, the president said the reform will foster innovation, not hamper it. It is designed to make sure that everybody follows the same set of rules, so that firms compete on price and quality, not on tricks and not on traps.