Tougher Rules and Lower Profits Seen as Unavoidable; Some Comfort Taken in View the Revamp Is 'Free-Market Enough'
Reaction on Wall Street to the proposed overhaul of financial regulations ranged from relief that the changes aren't as drastic as many had feared to resignation that tougher rules and lower profits likely are unavoidable.
The White House plan touches nearly every part of the money-making machine that churned out record profits for bankers, brokers, traders, hedge funds and private-equity firms, but then backfired with disastrous results.
The proposed revamp includes a new consumer-protection regulator, mandatory registration of hedge funds and private-equity firms, and new powers aimed at helping the Federal Reserve ensure market stability.
