Financial Regulation

It looks like Congressional negotiators have reached a deal on a bill to regulate big banks and that it will pass both houses. The bill is actually tougher than the one first proposed by the White House; as the Wall Street Journal put it, "large financial companies are facing a tougher leash." I think this is great news for America and the world, making it much less likely that we will face another meltdown like the last one in the next twenty years.

I am also pleased to see that new Massachusetts Senator Scott Brown, who struck me during his campaign as an appealing character but a policy idiot, took a serious approach to this bill and will vote for it in exchange for some minor changes. I think it is good news that this new Republican star is participating in the legislative process rather than just shouting obstreperous slogans.