Impact Of Proposed Legislation On Banking Sector

President Obama’s new proposed regulation for the banking sector has sent chills throughout the market.

Talking with CNBC, David Trone of Macquarie Capital said that he expects the markets to react negatively to the news. He also said that he sees slim chances of the passage of the bill and therefore any dip in banking sector is a good opportunity to buy.

However Daniel Alpert of Westwood Capital said that the bill is populist in nature and is likely to pass in a modified form. He said that new regulations would hamper the competitiveness of domestic banks such as JPMorgan (NYSE: JPM) and Bank of America (NYSE: BAC).