Traders whoop it up on the floor of the New York Stock Exchange as they watched the U.S. team score against Algeria in World Cup play on Wednesday.
Bank stocks had a surprisingly good day Friday, outperforming the rest of the market after it became clear that financial reform legislation hammered out in Congress would not meddle with precious bank profits. —JCL
Bank stocks shot higher Friday after an agreement on a financial regulation bill reassured investors that new rules won’t devastate financial companies’ profits.
Banks outdistanced the rest of the market after congressional negotiators agreed on a bill that increases the regulation of financial companies, but that doesn’t include some of the harshest provisions that the government originally proposed. The legislation imposes new rules on the complex investments known as derivates, but the rules aren’t as strict as investors feared.
It also includes a far milder version of what’s been called the Volcker rule. That rule, named after former Federal Reserve Chairman Paul Volcker, would have banned commercial banks from trading simply to increase their profits, a practice known as proprietary trading.