U.S. Congress agrees to historical financial reform

U.S. lawmakers forged a historic reform of financial regulation at dawn on Friday, which is a great local victory to President Barack Obama just before a global summit on the theme.

In a marathon session of more than 21 hours, lawmakers agreed to rewrite the rules of the market that will put pressure on Wall Street profits and will charge more supervisación and tighter restrictions.

The reform has yet to obtain final approval of both houses of Congress before Obama can sign it into law, which gives Wall Street one last chance to deploy his army of negotiators in Congress.
Quick approval was expected and the reform could go to Obama for signature on 4 July.

The project really has become heavier during his year of comings and goings in Congress. Drilled Democrats a wave of public disgust with the industry itself was granted big bonuses while much of the country was suffering a deep recession caused by their actions.

"We are concerned about great wealth. I worry that the great wealth have a corrupting influence, but it is satisfying to know that when public opinion is involved, will succeed," said Rep. Barney Frank, who headed the panel.

In the last hour of the meeting, lawmakers reached agreement on the most controversial sections of the project, which restrict derivatives intermediation of banks and limit their operations in an effort to protect the deposits riskier activities supported by taxpayers .

But industry won significant concessions that could loosen the rope.

The most comprehensive rewrite financial laws since the 1930s seeks to avoid a repetition of the financial crisis from 2007 to 2009, the recession and led to taxpayer bailouts of financial giants desperate.

Financial institutions will have to pay 19,000 million dollars to cover their costs.

"There is no way to see this law as a positive for the financial sector," wrote Jaret Seiberg, an analyst at Capital Concept, who nevertheless said it could have been much worse.

OPERATIONS OF RISKY LIMITS

The compromise allows banks to continue operations with exchange rates and interest rates, which represent the bulk of the direct derivatives market of 615 billion dollars.

Banks could also participate in exchanges of gold and silver and derivatives designed to cover its own risks.

They would have to separate the brokering activities engaged in agricultural trade, energy and metals, equity swaps and debt swaps unregulated certificates.

Lawmakers resolved another controversial point of the project around midnight, when they agreed that banks should face restrictions on their risky intermediation.

The project will dramatically transform the U.S. financial landscape.

Creates a new consumer protection authority and gives regulators new powers to control troubled financial companies before they can harm the economy.

While leaving intact the patched patchwork of federal regulators who failed to stop the last crisis, establishing an interagency council to monitor systemic risks to stability.

The project also requires much of the direct derivatives market, worsening the financial crisis and led to the bailout of insurer AIG by 182 000 million dollars, more accountable channels such as settlement agencies and markets.

The larger banks will have to raise more capital that will eventually help them deal with other crises.

The credit rating agencies like Moody's Corp, could see its business models in vertical positions by regulators who want to resolve conflicts of interest.

The credit card issuers such as Bank of America, are likely to reduce transaction fees charged to merchants who use their cards.