President Obama will still declare this a victory over the special interests, but Wall Street isn’t viewing the new financial regulation bill as a loss. The AP reports:
Lawmakers agreed early in the morning on a bill that overhauls the rules that govern banks and investment firms. The bill would regulate banks’ ability to trade in derivatives, but the rules are less strict than investors had feared….
U.S. Bancorp rose 5 percent in electronic trading ahead of the market open, while Bank of America climbed 2 percent. KeyCorp added about 4.4 percent. Some of the big Wall Street banks that will see the most changes from the bill also edged higher in part over relief of knowing what is in the legislation and in part because not all parts of the overhaul were as onerous as feared. Goldman Sachs Group Inc. rose 1.6 percent, while JPMorgan Chase & Co. gained 1.8 percent.?