FACTBOX: Major U.S. financial regulation reform initiatives
(Reuters) - The Obama administration and congressional Democrats are moving to tighten U.S. financial regulations to prevent another banking crisis.
Changes will affect banks, insurers, credit rating agencies, hedge funds, private equity firms, brokerages and exchanges, while extending the government's reach into the financial sector.
The following are the major issues involved:
OTC DERIVATIVES:
The administration on Wednesday proposed cracking down on over-the-counter derivatives with a plan to move more trading onto exchanges, require central clearing, supervise dealers more closely and bring more transparency to an opaque market.
Political risk exposure: JPMorgan Chase (JPM.N), Bank of America, Citigroup (C.N), Goldman Sachs (GS.N), CME Group Inc (CME.O), Intercontinental Exchange (ICE.N).
CREDIT CARDS:
The U.S. House of Representatives and a Senate committee have approved bills to crack down on credit card companies by, for example, limiting fees and barring sudden rate increases.
The House approved its bill by a vote of 357-70 on April 30. Debate on a Senate bill was under way on Thursday.
Political risk exposure: American Express (AXP.N), Bank of America (BAC.N), JPMorgan Chase (JPM.N), Capital One (COF.N), Citigroup (C.N), Discover Financial (DFS.N).
HOUSING, MORTGAGES AND SECURITIZATION:
The Senate and the House are moving toward agreement on legislation to tighten rules on mortgage financing, curb predatory lending and assist troubled homeowners.
The House approved a bill on May 7 to force mortgage lenders to keep 5 percent of loans they securitize, tighten mortgage broker oversight and protect borrowers.
The Senate approved a bill on May 6 to retool a $300 billion housing rescue fund to help homeowners and encourage mortgage servicers to ease the terms of distressed loans. The House has passed a similar bill. An agreement could come soon.
Political risk exposure: Citigroup, Wells Fargo (WFC.N), Bank of America, JPMorgan.
UNWINDING FAILING FIRMS: Continued...
