... however, there are still some unsettled details. The last marathon negotiation lasted 20 hours long, and the bill seems to be the strictest financial regulation since the 1930’s.

Analysts and executives stated that the draft of the bill was not as tough as they feared, but tougher than they hoped. Wall Street’s financial institutions reacted positively on these news. President Obama said that the bill contains 90% of his initial thoughts, when he started the proposal regarding the regulation of the whole financial sector. The aim of the bill is to protect consumers from vast losses, while preventing the government from financing bailouts of the financial institutions. Republicans mentioned the cons of the proposal: the bill would restrict access to credit and foster the too big to fail concept. The so-called Volcker rule was also contemplated; the rule divests banks from conducting proprietary-trading. Some banks were forced to spin-off their divisions which do these kinds of operations. The trade of certain derivatives would be restricted for the federally insured banks also. Hedge funds and banks will have to pay a fee of 19 billion dollars, which is definitely a flashpoint and a point of argument for the bill.

The particular details of the upcoming financial bill are uncertain yet; however, it is clear that the banking sector will be regulated in an unprecedented extent. It is an issue of the future how the banks will handle this; it is, however determined that their capital structure will be less volatile and the losses of financial institutions will affect the economy less significantly – argue people familiar with the matter.

Further information:
The Wall Street Journal - Sweeping Finance Bill Set