Our leaders were up late hashing out a version of the new financial reform bill and yes, apparently they have come to some agreement. But what’s in there?

The AP breaks it down, but here are a few highlights:

Oversight: A Financial Services Oversight Council which includes treasury secretary, Federal Reserve chairman, a presidential appointee with insurance expertise, heads of regulatory agencies and a new consumer protection bureau are going to monitor the markets and look for threats. This is the body that will have the power to break up firms if the pose a threat.

Consumer Protection: The Consumer Financial Protection Bureau will exists within the Federal Reserve, taking over for powers now held by bank regulators.

Federal Reserve: With the approval of the aforementioned council, the Federal Reserve could “break up large, complex companies that pose a grave threat to the financial system.”

Derivatives: Derivatives will mostly have to be traded on regulated exchanges and “…bank holding companies would have use subsidiaries utilizing their own, non-bank source of funds to trade in riskier derivatives, including mortgage credit default swaps blamed for accelerating the financial crisis of two years ago. Any federal assistance to banks to prevent losses that result from derivatives trading would be prohibited.

Executive Pay: Shareholders get the right to vote on executive pay packages. Fed gets to set standards for risky pay.

Mortgages: Lenders have to get proof that a borrower can pay their mortgage, and will have to disclose the maximum amount people would have to pay on an adjustable rate mortgage.

So what do you think?

Provisions of the negotiated financial reform bill [AP]

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