One final piece of news that’s fueling bank stocks is a report, discussed in a DealBook column yesterday, that industry regulators have agreed to soften a rule related to the sale and marketing of derivatives by the nation’s largest banks. The Commodity and Futures Trading Commission had proposed forcing asset managers to get price quotes from at least five banks prior to entering into a transaction. Under pressure from Wall Street lobbyists, however, it’s dropped the standard to two banks.
While this is generally good news for the nation’s largest banks — though, it’s arguably not in the interest of competition or financial stability — the impact it will have on a largely Main Street operation like Wells Fargo & Co (NYSE:WFC) is less than at, say, JPMorgan Chase & Co. (NYSE:JPM) or Goldman Sachs Group, Inc. (NYSE:GS).
The article Buffett Boosts Stake in Wells Fargo, Sending Shares Higher originally appeared on Fool.com.
John Maxfield has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo & Co (NYSE:WFC). The Motley Fool owns shares of Wells Fargo.
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