WASHINGTON ��" Lawmakers hammered out a historic overhaul of financial regulations as dawn broke over the nation's capital on Friday, handing President Barack Obama a major domestic victory on the eve of a global summit devoted to financial reform. In a marathon session of more than 21 hours, legislators agreed to a rewrite of Wall Street rules that will crimp the industry's profits and saddle it with tougher oversight and tighter restrictions. The reform must still win final approval from both chambers of Congress before Obama can sign it into law, giving Wall Street one final chance to deploy its army of lobbyists on Capitol Hill. Quick approval is expected and the reform could go to Obama for his signature by July 4. The bill has actually gotten tougher in its yearlong journey through the halls of Congress. Democrats rode a wave of public disgust at an industry that awarded itself rich paydays while much of the country struggled through a deep recession caused by its actions. "We worry about big money. I worry about big money having a corrupting influence, but it is reassuring to know that when public opinion gets engaged, it will win," said Democratic Representative Barney Frank, who headed the panel. In the final predawn hours, lawmakers reached agreements on the bill's most controversial sections, which restrict derivatives dealing by banks and curb their proprietary trading in an effort to shield taxpayer-backed deposits from more risky activities. But the industry won significant concessions that could lessen the sting. The most sweeping rewrite of financial rules since the 1930s aims to avoid a repeat of the 2007-2009 financial crisis, which touched off the recession and led to taxpayer bailouts of floundering financial giants. Financial institutions would have to pay $19 billion to cover its costs. "There is no way to view this bill as a positive for the financial sector," wrote Concept Capital analyst Jaret Seiberg, who noted that it could have been much worse. Democrats raced to complete their work before Obama traveled on Friday to Canada for the Group of 20 meeting of economic powers, scheduled for Saturday and Sunday. Obama will be able to tout the reform as a blueprint for other countries as they try to coordinate their reform efforts. Passage of the bill, now widely expected, will also give Democrats an important legislative victory, alongside healthcare reform, ahead of congressional elections in November. The House could vote as soon as Tuesday, Frank said.
