“The banks will have numerous methods of getting around the most onerous provisions in this bill to maintain their earnings growth,” he added. “But the things they will do will increase the cost of banking to everybody in this country.”I can say from firsthand experience that the Credit CARD Act of 2009 pushed credit card companies to either cut services or increase or add fees for services that had previously been free. Coupled with the irresponsibility of ObamaCare, through which Dems learned that they didn't have to actually think about the repercussions of the laws they passed until after they were passed (and maybe not even then), I expect this bill to do nothing but pass on costs to bank customer -- the same people who Democrats are theoretically protecting by passing this legislation.
“There is still a long way to go in terms of getting clarity on the key issues that investors are focused on, like required capital,” Mr. McDonald said.
Just take an issue like derivatives. It is still not clear what activities the banks will need to cordon off in a separate holding tank. Nor is it clear how much capital they will need, which is a major factor affecting the profitability of the business, he said.[emphasis added]
One part of the legislation known as the Lincoln Amendment, for example, would demand the banks hold more capital. At the same time, another part that drives derivatives trading onto clearinghouses and exchanges could lessen, in aggregate, the amount of capital that banks must hold. “There are a lot of variables in the air,” Mr. McDonald noted.
I know it's boring, but here's our guy: