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 JPM and Bank of America 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: PoliticsMarketsGeneralBlanche Lincoln
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!