Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Obama on new law: 'No more taxpayer bailouts'

obama_signing_gi.top.jpgPresident Obama signs the Wall Street reform bill into law, with Vice President Joseph Biden and several key lawmakers watching. By Annalyn Censky, staff reporter

NEW YORK (CNNMoney.com) -- After more than a year of effort by its advocates, President Obama signed the Wall Street reform bill into law Wednesday, promising that the measure will put an end to taxpayer-funded bailouts of failed banks.

"Because of this law, the American people will never again be asked to foot the bill for Wall Street's mistakes," Obama said in a ceremony at the Ronald Reagan Building in Washington. "There will be no more taxpayer-funded bailouts. Period."

Considered the most sweeping overhaul of the financial system since the New Deal, the law immediately gives regulators stronger powers to break up financial companies that have grown too big.(Want to know what happens next? Read about Wall Street reform's timeline.)

Among its many provisions, the law also attempts to shine a light on complex financial products called derivatives and creates a new consumer protection agency that will set rules to curb unfair practices in consumer loans and credit cards.

"These reforms represent the strongest consumer financial protections in history," Obama said. "And these protections will be enforced by a new consumer watchdog with just one job: looking out for people - not big banks, not lenders, not investment houses - in the financial system."

At the signing, Obama was flanked by a number of lawmakers who worked on the legislation, including Sen. Christopher Dodd, D-Conn., and Rep. Barney Frank, D-Mass., the two committee chairmen who sponsored the bill.

Elizabeth Warren, the Harvard law professor considered a leading candidate to run the consumer protection agency, was among the President's 400 guests on an invitation list to the ceremony. Also invited were Vikram Pandit, the chief executive of bailed-out Citigroup, and Bob Diamond, president of British lender Barclays.  To top of page

Index Last Change % Change
Dow 17,812.19 19.51 0.11%
Nasdaq 5,102.81 0.33 0.01%
S&P 500 2,089.14 2.55 0.12%
Treasuries 2.24 -0.01 -0.31%
Data as of 11:44pm ET
Company Price Change % Change
General Electric Co 30.66 0.07 0.23%
Pfizer Inc 31.97 0.64 2.04%
Bank of America Corp... 17.47 0.00 0.00%
Freeport-McMoRan Inc... 8.30 0.30 3.75%
Synchrony Financial 31.34 -0.21 -0.67%
Data as of 4:00pm ET


The financial deck appears to be stacked against blacks and Hispanics in America. They earn considerably less. They are more likely to be unemployed or in poverty and they are less likely to own a home. Yet despite all this, blacks and Hispanics are far more optimistic about being able to live the American Dream these days than whites. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Some of the coolest toys this year are from small businesses. Here are 10 hot toys that just might be a smash hit this holiday season. More

Your new credit card might be safer, but it could lead to more headaches at the check-out line this holiday season. More