- Crafted by Financial Services Committee Chairman Jeb Hensarling, the bill is expected to pass today. It would then move to the Senate, where one would expect at least some watering-down.
- The XLF is higher by 1.4% vs. the S&P's flat.
- Among the features of the House bill: An overhaul of the Consumer Financial Protection Bureau, which in its short life has quickly become an essentially unaccountable bureaucracy able to strike fear in pretty much any company it so chooses. It would be renamed the Consumer Law Enforcement Agency, and its leader - currently Richard Cordray - would have to answer to the president. Among interested parties: Ocwen Financial (OCN +1.3%), PHH Corp (PHH +0.7%), Santander (MC:SAN) Consumer (SC flat), World Acceptance (WRLD +3.4%)
- A rollback of Dodd-Frank provisions like regulators' orderly liquidation authority, the FSOC's ability to designate certain players SIFIs, and the Volcker rule. Also to be eliminated is the DOL's fiduciary rule.
- There's also language allowing banks with a simple leverage ratio of 10% or more to be exempt for certain regulations - significant relief to costs heaped upon smaller lenders.
- Bank of America (BAC +2%), JPMorgan (JPM +1.8%), Citigroup (C +1.7%), Goldman Sachs (GS +1.4%), Regions Financial (RF +3.3%), U.S. Bancorp (USB +1.8%), KeyCorp (KEY +2.2%), New York Community (NYCB +2.3%), MetLife (MET +2.3%), Prudential (LON:PRU) (PRU +1.8%), Waddell & Reed (WDR +1.9%), Federated Investors (FII +1%)
- ETFs: XLF, FAS, FAZ, VFH, UYG, IYF, FNCL, BTO, IYG, FXO, SEF, RYF, FINU, XLFS, FINZ, RWW, FAZZ, JHMF, FNCF
- Now read: Bank Of America: Struggling Into The CCAR
Original article