The Senate's Passed FinReg, What's Next?
The Senate passed their financial reform bill last night. But this isn’t the end of the story. Whether this is reconciled with the House version behind closed doors or in public debate will be key. House members do not like the price-fixing or derivatives measures present in the Senate version, and we can expect a few fights in the conference process.
One question yet to be addressed is, how much does this correctly balance the need for financial reform with international competitiveness?
Bottom line: We are going to ask firms to raise more capital and impose more fees, which will come from the economy. Will this risk a credit contraction that will harm growth? And run the risk of another downturn down the line?