Obama finance reform programmes will be saying goodbye to Wall Street profits era?

United States President Barack Obama recently signed since the great depression has the largest financial reform act, this year's mid-term elections will be on how to implement the Act expands the argument.

Under this Act, the United States Government will establish a new bankruptcy liquidation mechanism, the original financial enterprise "too big" status will be changed. New Act on Bank proprietary trading as well as the high risks of derivatives deals more stringent restrictions, allows the Bank to invest in hedge funds and private equity, but the scale of funds shall not be higher than its own level of 3% of the capital, this is to reduce the Bank's high risk activities.

In addition, existing financial regulation sector officials will form new financial stability Oversight Board, and the establishment of a new large consumer protection agencies, to protect consumers in the mortgage and credit card products from damage.

United States introduced a new financial regulation will bring to the world financial sector. Some analysts said that although the Act was not perfect, but at least it's better than no statute. Obama believes that the financial regulatory reform is the most powerful consumer financial protection, the United States will no longer have to come to Wall Street's error. However, some analysts believe that this Act does not address many of the potential problems, it is difficult to avoid a future crisis still. Survey shows that most economists believe the financial regulatory reform will only slightly reduce another crisis of risk, and may limit credit and put pressure on the Bank and endanger the economic recovery.

The adoption of the financial supervision Act means that Wall Street will usher in changes. Some analysts predict that Wall Street is about to usher in a far-reaching reforms, investors are starting to see light in the US stock market, the United States Bill of the new financial regulation may lead to large bank net profit declined 13%-14%, including Citigroup, United States Bank and Morgan Stanley may be affected by the degree of impact of the home front.

United States banks announced second quarter results that has just been adopted by the financial regulation reform act may be brought to the United States more than $ 1 billion in the Bank's losses, which the new Act on debit card fees provisions will enable the Bank's annual income loss 18 billion — 23 billion, these losses are expected in the third quarter of 2011.

Experts said that the financial reform Act came into effect, marked the Republican party's policy of financial liberalization period has passed, the Democratic Party of big government, strict supervision of the era had arrived.

In the United States Senate passed last week the final version of the Act, the United States listing of Bank shares have plunged, highlight the investment banking profit may be affected by the new Act restrictions.