3 Financial ETFs Most Influenced By New Bank Rules

Kevin Grewal submits:

Most recently, both the House and the Senate passed sweeping financial overhauls which include more stringent rules on lending, increased debt to capital ratios on large financial institutions, and refinements in the regulation of derivatives markets. The two bills are similar in nature, are expected to be merged into one by the end of the summer, and will likely have an influence on the financial sector.

On the lending forefront, both bills will make it extremely difficult for mortgage brokers to make money on high interest loans and will require loan seekers to demonstrate and prove their ability to make monthly payments via paycheck stubs or other financial security. Additionally, both bills call for a new consumer watchdog to oversee all lending, in which the House sets up a stand-alone Consumer Financial Protection Agency with rule-writing powers and the Senate sets up an independent bureau within the Federal Reserve.

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