Sunday, July 25, 2010

Industry Reacts To FinReg

The Financial Services Roundtable,a trade group,has been digesting the new financial reform bill just signed into law by President Barack Obama.They're in the accepting reality stage,said CEO Steve Bartlett.Their industry finances about 65% of the American economy.Most people believe there will be some diminution of credit because of the new law.Lending has been pretty flat for a couple of quarters as it is.The systemic risk part of the law is really good.They're just gonna live with the new law.They're just gonna make it work.
JP Morgan Chase,Fidelity and State Farm are among the trade group's members.Pure investment banks such as Goldman Sachs are not.Goldman Sachs is a great,very sophisticated company.Although they're not members,it's important to the economy that they do well.
Price controls on debit cards are a scary thing.The breadth of the law's consumer protection language is beyond belief.You shouldn't have regulations for price controls or product selection.The free checking is probably gonna go away to pay for the new debit card rule.The industry and some of the companies did go overboard with fees,admitted Steve Bartlett of the Financial Services Roundtable.
Mr.Bartlett is a former Member of Congress and mayor of Dallas.
JP Morgan Chase(JPM),Goldman Sachs(GS)

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