The bottom line on financial regulation
Tuesday, June 29, 2010
The House and Senate are getting ready to vote on new rules regulating Wall Street after lawmakers spent last week hammering out a final version of the bill. Democratic leaders still hope to deliver the legislation to President Obama's desk by July 4, although the death of Sen. Robert C. Byrd (D-W.Va.) could complicate matters.
The bill, which clocks in at 2,319 pages, sets up some industry winners and losers. Here's a rundown:
-- Community banks: Exempt from the hefty regulatory fees assessed on larger banks and left mostly free of a new consumer watchdog's oversight.
-- Insurance and mutual fund companies: Exempt from the "Volcker rule," which restricts certain kinds of trading.
-- Movie industry: Won a ban on all trading of box office futures.
-- Derivatives exchanges: Mandatory clearinghouses for derivatives trades could increase business at places such as the Chicago Mercantile Exchange.
-- Institutional investors: Gain greater say over the makeup of corporate boards.
-- Auto dealers: Scored a major last-minute victory winning exemption from the consumer bureau's watch.
-- Big banks: The results could have been worse, but Goldman Sachs and J.P. Morgan Chase will still have to devise ways of making up for lost revenue after new rules on risky trading kick in. Plus, the bill calls for a $19 billion tax on large banks to pay for costs associated with the bill.
-- Oil and mining companies: Hit by an eleventh-hour measure requiring them to disclose any payments to foreign governments related to energy projects abroad.
-- Credit card companies: Have far less power over fees charged to retailers on credit card transactions.
-- Mortgage lenders: Subject to greater scrutiny and more rules from the consumer protection watchdog.
-- Jia Lynn Yang