The Senate's financial regulatory reform bill was passed by the Senate on Thursday evening. The devil will surely be in the details -- both with respect to how the reconciliation with the House of Representatives' similar bill (H.R. 4173) is worked out and then how the implementing regulations are developed by the Fed, the SEC, the FDIC, etc.
But there are 2 elephants in the room about whom there will be no details worked out: Fannie Mae and Freddie Mac. Both bills are completely silent with respect to any reform of these two dominant entities in the residential mortgage secondary markets. How anyone on Capitol Hill can claim that these bills represent "fundamental reform", when these 2 mortgage giants -- who will probably represent the largest net cost from the federal government's "bailouts" of the financial sector -- remain unaddressed, remains a deep mystery.