U.S. Financial Sector Can Expect "Profound" Changes, Says IMF
The International Monetary Fund predicted “profound” changes in the U.S. financial sector as a result of new regulations, according to a report released on Tuesday.
New rules for banks, money-market mutual funds, securitization, and over-the-counter derivatives will bring big changes to the sector, the IMF said in an analytical chapter of its Global Financial Stability Report. Many of these are part of the 2010 Dodd-Frank financial reform law. Regulators tasked with the law's implementation are still developing many of the rules.
“Because many of the new rules remain under development, predicting their impact on the structure of the financial sector is difficult,” the report said. “Nevertheless, profound changes are likely, as investment banking becomes less profitable and the costs of running OTC [over-the-counter] derivative and securitization businesses rise.”
Source: National Journal . Read full article. (link)
Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time.
-
If predicting the impact of new rules is difficult, then those rules should not be implemented. Doing otherwise, with the Harry Reid idea that new rules can be passed to fix the old ones, is arrogant foolishness that often results in the opposite of the original intent.