Senate lawmakers on Thursday approved the most significant increase in the regulation of U.S. banks since the Great Depression, placing new restrictions on the nation's biggest banks, reining in the Federal Reserve and crafting a major new consumer-protection division for mortgage and credit-card products.
It would seek to prohibit big banks from making speculative investments in stocks, bonds and derivatives, limit their growth, and force big banks to divest hedge fund and private equity units. Oh yea, the Feds cashed out their stock in CitiGroup today and made around $2.6 billion.
This sounds good for most of it, and I agree with most of it as well...but ultimately, this will track people and their spending to make sure "we are buying what we are supposed to" and the new agency that is to be created with this bill, it will now give the Government control of 60% of the overall banking and spending you do. And of course to look all sweet and caring, the President wants this on his desk and ready to be passed on July 4th (puts out hands like in handcuffs). Big Bro at work.
Here's a snip-it from the NY Times below.
"Merchants might offer more discounts to people who pay cash. You could get a free credit score every time a lender or landlord penalizes you with a high interest rate or rejects your application because your score is not up to snuff. Many mortgage prepayment penalties would go away. And there will be a consumer financial protection agency, despite many efforts to kill it off".
Here's the full version here
Also more on The Hill and Market Watch