The measure is central to lawmakers’ effort to end government rescues of firms deemed too big to fail, which led to last year’s bailouts of New York-based American International Group Inc. and Citigroup Inc. The banking industry, Republican lawmakers and the nation’s biggest business lobby are fighting to scale back the legislation.
The Wall Street Reform and Consumer Protection Act adopts priorities President Barack Obama outlined in June for strengthening financial rules. The bill lets regulators unwind failed systemically important firms, sets up a council to monitor for systemic risk and creates a $150 billion industry- backed fund for dissolving large failed firms. The bill ends a ban that shielded the Federal Reserve from audits of its monetary policy decisions.