The Dodd-Frank bill was approved following an all-night bargaining session by Congressional negotiators. If approved by the Full House and Senate and passed into law, the bill will include new consumer protection measures, and will place limits on high-risk investment practises blamed for triggering the past recession.
Of note, the so-called Volcker Rule which prohibited banks from conducting in proprietary trading, was softened somewhat, and banks will be permitted to invest in private-equity and hedge funds. They will however, be limited to providing no more than 3 percent of the fund’s capital.
Source: Bloomberg
