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
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.