Reform Isn't Perfect, But Still 'Big and Welcome'

The Wall Street reform that emerged from Washington this morning isn't perfect, but all in all this is a "great day," writes financial blogger Felix Salmon at Reuters. The consumer protection agency is overdue, "and while banks won’t have to sell their swaps desks entirely, they will need to spin them off into separately-capitalized, small-enough-to-fail subsidiaries which deal mainly on public exchanges. That’s a big and a welcome change."

The Volcker rule is still "very vague," and it's unclear whether the SEC will be able to handle its new regulatory duties. "But in general the bill makes as robust an attempt as could reasonably be expected to both monitor and ring-fence the kind of things which can cause systemic meltdowns." Next for Obama: Keep pushing for banking reform on the global stage, where it really matters, advises Salmon. This weekend's G20 summit is a good place to start.
(More Wall Street stories.)