House Compromises with Lincoln on Derivatives Reform (JPM, BAC)
A derivatives reform compromise has been offered after long discussions between Senator Blanche Lincoln and House representatives.
Under the compromise, banks will still be permitted to trade some derivatives that relate to foreign exchanges, interest rates, gold and silver.
Big banks like JPMorgan (NYSE: JPM) and Bank of America (NYSE: BAC) are not pleased about any derivatives reform, but this compromise is gentler than Lincoln’s version of the bill. The bill signed by the Senate would force banks to spin off all derivatives business into subsidiaries, cutting the institutions off from access to the capital provided by customer deposits.
Watch these stocks and other financials in Friday’s session.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.