G-20 Summit, Reform Bill Put Financial ETFs In Focus

Financial stocks will be in focus in coming days, as investors digest financial reforms agreed upon by lawmakers in a bill known as the Dodd/Frank Act. These reforms were passed on early Friday in what many are calling the most sweeping regulatory overhaul on the American financial system since the 1933 and 1934 Security Exchange Acts were instituted in the wake of the Great Depression. Among the biggest changes are new rules that will prevent banks from providing more than 3% of private equity and hedge fund capital; banks will also no longer be able to invest more than 3% of their tier one capital. There will also be a ‘bank tax’ to cover future bailouts, a new consumer protection agency, forced divestiture of derivatives, as well as a slew of other changes affecting virtually every sector of the financial industry. Despite the major changes, financial ETFs have shrugged off [...] Click here to read the original article on ETFdb.com. Related Stories: Dodd Unveils Reform Bill, Financial ETF (XLF) Yawns Why The Reform Bill Boosted Financial ETFs Financial ETFs: Seven Ways To Play