The Senate on Thursday by a vote of 60 to 39 approved the most sweeping overhaul of bank and capital market regulation in decades, sending it on to President Barack Obama to be signed into law.

Coming almost two years after the peak of a financial crisis that devastated the economy, the 2,300-page bill would slap tough new rules on the banking industry, set up a government process for dismantling troubled financial firms, and create a government watchdog to protect consumers.

Approved over strong resistance from Republicans and bank lobbyists, the bill gives Obama and the Democrats a legislative victory to add to healthcare reform as they head into the November elections.

(Reporting by Kevin Drawbaugh and Andy Sullivan; Editing by James Dalgleish)