Two years after Lehman Brothers' devastating bankruptcy and the US Federal Reserve's $30bn rescue of Bear Stearns, legislation to overhaul the US financial regulatory system to reduce the risk of another disastrous crisis is finally gaining traction in Congress.
Christopher Dodd, the Connecticut Democrat who chairs the Senate banking committee, moved a bill though his committee in mid-March with support from Democrats only. However, following accusation by US authorities against Goldman Sachs of securities fraud during the 2007 credit bubble, many believe the chances have increased of a full Senate vote on a tougher draft in April; Timothy Geithner, the US Treasury secretary, and others have expressed confidence that Republicans would vote in favour of the legislation. (At least 60 senators must vote in favour of the bill for it to pass in the Senate. Democrats, who lost their Senate majority earlier this year, now effectively have 59 Senate seats so they need at least one Republican to vote with them.)
