Lawmakers Hammer Out New Wall Street Rules Reach compromise on overhaul, create consumer agency By Newser Editors and Wire Services Posted Jun 25, 2010 5:21 AM CDT Updated Jun 25, 2010 7:49 AM CDT 13 comments Comments A file photo of Senate Banking Committee Chairman Sen. Christopher Dodd, right, and House Financial Services Committee Chairman Barney Frank. (AP Photo/Susan Walsh, File) (Newser) – House and Senate negotiators have completed a sweeping overhaul of banking regulations and aim to send it to President Obama by July 4. Lawmakers finished assembling the bill about dawn. Some highlights: It creates a consumer financial protection bureau to police lending (though not auto dealers). Establishes the so-called "Volcker rule" to limit banks from taking risks with their own funds, though the measure was softened a bit. Blanche Lincoln's rule to make banks spin off their derivatives businesses survived after it too was softened. Only the riskiest of such trades are now affected. Payday lenders and check cashers would be regulated, but enforcement would be left to states or the FTC. No action was taken to overhaul Fannie Mae and Freddie Mac. More details at the Wall Street Journal.