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U.S. Senate Passes the Restoring American Financial Stability Act of 2010 which still needs House Approval : Paul Weiss issues Detailed Alert

By Andis Kaulins

The New York headquartered law firm Paul Weiss et al. ("Paul Weiss"), the alma mater law firm of the LawPundit, just issued (May 26, 2010) a detailed client alert titled Senate Passes Comprehensive Financial Reform Bill.

The Paul Weiss alert covers "the Restoring American Financial Stability Act of 2010 (the ?Bill?)", which was passed by the U.S. Senate 59 to 39 on May 20, 2010, and "which is aimed at strengthening the U.S. financial system and preventing future crises."

As written in that alert by Paul Weiss:

"The Bill is comprehensive in scope, proposing significant changes to the structure of federal financial regulation and new substantive provisions that apply to a broad range of market participants, including public companies that are not financial institutions. Among other elements, the Bill includes proposals for executive compensation and corporate governance reform, hedge fund adviser registration, heightened regulation of over-the-counter derivatives and asset-backed securities and new rules for credit rating agencies. The Bill also proposes significant changes to the authority of the Federal Reserve Board and the Securities and Exchange Commission as well as enhanced oversight of large bank and non-bank financial institutions.

This memorandum summarizes the key provisions of the Bill, based on available sources. Prior to being signed into law, the Bill must be reconciled with a parallel bill passed by the House of Representatives last December. This process is expected to be completed in the coming weeks. The final bill is expected to more closely resemble the Senate Bill with some potentially significant changes."

These are very important matters for the future regulation of the U.S. and world economy, so one is well-advised to read the whole summary (.pdf) to be optimally informed of developments.

Full post as published by LawPundit on May 27, 2010 (boomark / email).