Why financial regulation reform is needed, but won't happen

Debate will finally begin on the Senate floor on financial regulation reform. It's about time. The market crash in 2008 showed all of us, lay and professional alike, the weaknesses of the existing financial system and need for reform. True, some regulations have since been adopted, or strengthened. But a more extensive overhaul is necessary in order to address enormous issues with bailouts, corporate loopholes and banking regulations. The current inquest into Goldman Sachs is a mere remedy for past wrongs, but proves nothing to prevent similar excesses in the future. I believe that Republicans have some solutions that can work, even within a package of Democratic proposals. It's about time the Republican senators ended their defiance and at least allow debate to begin.

Nonetheless, I do not see passage of a major bill in the near future. Financial regulations overhaul is a tricky endeavor. The last time a bold bill passed was amid the Great Depression. Nowadays, with signs of a tentative recovery already in place, there will be more reluctance to take drastic measures. Additionally, big companies lobbyists still hold tremendous power in Washington. Rather than being ridiculed for their faults and errors, they are relied upon to get America back on track (somewhat true, although small businesses are the key). I believe they will be able to twist arms and sweat out enough politicians to get a bill to their liking. Unfortunately, it will be weak and not much of financial overhaul at all.