I think it's a bit early to label the administration's financial regulatory reform proposals a "damp squib." This wouldn't be the first time that the run-up to a major policy announcement announcement out of the Obama White House depressed expectations but observers found themselves pleasantly surprised when the details were unveiled.
WASHINGTON — Working against a midnight deadline, negotiators for the White House and congressional Republicans in Congress narrowed their differences Monday on legislation to avert across-the-board tax increases.
Congressional officials familiar with talks between Vice President Joe Biden and Senate Republican leader Mitch McConnell said one major remaining sticking point was whether to postpone spending cuts that are scheduled to begin on Jan 1.
With just over 24 hours to go until the fiscal cliff deadline, Senate negotiators are still scrambling to come up with a last-minute deal to prevent the huge tax hikes and budget cuts scheduled to go into effect on January 1.
[5:20 pm ET] Thirteen Italian banks suffered additional credit ratings cuts on Monday, which directly led to the losses in Italy and Spain as well as traders are now focused on more cuts to come for Spain. In this WIR, in the section on International Equity Markets, I look at a couple Spanish banks. From Friday’s scoreboard, I could as easily looked at the Italian banks or the French banks or the German banks or the British banks.
I think it's safe to say that the reaction to the White House's financial regulatory reform proposal was cautiously positive. It's not the root-and-branch restructuring that some wanted. But it covers the basics (leverage, systemic risk, derivatives) and offers a few welcome additions (the Consumer Financial Protection Agency).
But is anyone actually sanguine about it being made law?