After more than a year of bargaining, the Obama administration's financial reform legislation has finally become law. The President claimed "the American people will never again be asked to foot the bill for Wall Street's mistakes, and there will be no more taxpayer-funded bailouts". But the public has given the bill the thumbs-down. According to a Bloomberg poll, 80 percent think the new law will not prevent another financial crisis, and more than 75 percent say their savings are no safer than before.

And the public are right to be skeptical.

First of all, the law tinkered with the financial system rather undertaking a root-and-branch reform. The principal aim of the bill was to restore the credibility of financial institutions. Newsweek complains that it pays more attention to resolving crises rather than "insulating us against financial panic and crisis". It is rather like doctors who concentrate on treatment and ignore prevention.

Second, the legislation is a typical product of compromise and leaves banking interests in a strong position. The law is acknowledged on all sides to be less tough than expected. The real estate abuses that caused the crisis have not been addressed; Obama's proposed "bank tax" was not adopted; no restrictions have been placed on "financial innovation", transnational speculation and market manipulation. More than 90 percent of derivatives transactions remain legal. This is all the result of horse trading from which public opinion was excluded.

Third, the practical effect of the new law is uncertain. The law is complicated and ambiguous; for example, it defines a seven-year transition period during which details will be worked out, leaving yet more opportunities for interest groups to water down its provisions.

Fourth, the government's main motives in enacting the reform were to build Obama's image and score points against the Republicans in the run-up to the mid-term elections. The naked political motivation did not play well with the public.

Finally there are matters that the administration cannot control.

Capital flows into the US from emerging economies mean America is flush with cash even when financial crisis sweeps the globe.

The big banks will do their best to water down the legislation and tempt customers with new "products."

The crisis will be forgotten as soon as there is a sustained stock market rally. Americans are still wealthy and will pile into the markets again once the recovery gets under way.

Theoretically, the beneficiaries of the financial reform are investors and consumers, but the public are not showing the government any gratitude. It may take another crisis to change their minds.

(The post was first published in Chinese and ranslated by Lin Liyao)