WASHINGTON, June 30 (Reuters) - The U.S. House of Representatives on Wednesday approved a landmark overhaul of financial regulations but the Senate put off action until mid-July, delaying a final victory for President Barack Obama.
Still, the 237 to 192 vote in the House marked a win for Obama and his fellow Democrats, who have made the most sweeping rewrite of Wall Street rules since the 1930s a top priority in the wake of the 2007-2009 financial crisis.
"That's why were are here today, to make sure that never happens again," House Speaker Nancy Pelosi said. "We will pass the toughest set of Wall Street reforms in generations."
Analysts say Obama is all but certain to get the measure on his desk eventually, but Democrats' hopes of sending a bill to him to sign into law by the July 4 Independence Day holiday were dashed.
The death of Democratic Senator Robert Byrd and cold feet among Republican allies has complicated efforts to round up the votes needed in the Senate. A week-long break following the July 4 Independence Day holiday means the Senate won't act until the week of July 12, at the earliest.
The bill would impose tighter regulations on financial firms and reduce their profits. It would boost consumer protections, force banks to reduce risky trading and investing activities and set up a new government process for liquidating troubled financial firms.
With congressional elections approaching in November, Democrats have ridden a wave of public disgust at an industry that has awarded itself fat paydays while the rest of the country struggles with high unemployment.
Wall Street and Republicans have tried to delay the bill or lessen its reach, but the measure has actually gotten tougher during its year-long journey through Congress.
Republicans say the bill would hurt the economy by burdening businesses with a thicket of new regulations. They also point out that it ducks the question of how to handle troubled mortgage finance giants Fannie Mae and Freddie Mac, which Democrats plan to tackle next year.
Fannie Mae and Freddie Mac, which own or guarantee half of all U.S. mortgages, have received a total of about $145 billion in taxpayer bailouts since being seized by the government in September 2008. Their regulator has said he does not know how much more taxpayer support they will need.
"All this bill before us does is perpetuate the same dumb regulation that got us into this financial pickle in the first place," said Republican Representative Jeb Hensarling.
Democrats have seized the opportunity to link their political foes with an unpopular industry. Obama on Wednesday accused Republicans of being out of touch with the American people for opposing reforms, and others echoed his line of attack on the House floor.
"Republicans have sided with big Wall Street banks at every opportunity," said Democratic Representative Luis Guitierrez. "If it helps Wall Street banks, they favor it, but if it helps Main Street and regular Americans, they won't vote for it." Link to Pretend Financial Reform
Barney Frank, Chris Dodd
and Nancy Pelosi Version
Scott Brown and John Boehner Version
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