House Passes Financial Regulations Overhaul

The House today passed a sweeping overhaul of financial regulations that would govern Wall Street and reconfigure the power of the agencies overseeing the banking system. The vote was 223-202, with nearly all Republicans in opposition because of fears over too much government intrusion. The bill is designed to address the shortfalls that led to last year's calamitous financial meltdown.

New powers would give the federal government the right to break up big risky companies. It also would create a consumer agency to police lenders and provide more oversight of the massive derivatives market. The legislative activity now moves to the Senate, which is not expected to act on a regulation bill until early next year. (More House of Representatives stories.)