The House and Senate have agree upon financial reform legislation. The main aspects of the bill include according to the Reuters Factbox:
Wall Street firms would have to spin off over-the-counter derivatives dealing operations in some swaps, but could keep many swaps in-house, including derivatives to hedge their own risk.
A new rule would bar proprietary trading by banks for their own accounts unrelated to customers; limit the growth of the biggest banks; and curb banks’ involvement in private equity and hedge funds
Plans for a a new government “orderly liquidation” process for financial firms on the verge of collapse.
A new protection of financial consumers would be enhanced by increased government regulation
Private equity and hedge funds would have to register with regulators and open their books to scrutiny.
Banks would have to set aside more capital to ride out tough times, but will get several years to comply.
The Fed’s emergency lending during the crisis would be reviewed, but not its decisions on interest rates
Douglas A. McIntyre
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