Schroders: Reforms will restore US financial stability

Schroders takes an in-depth look at the US financial reform and explains why it is likely to result in a stable banking and financial system.

As we expected, the final version of the legislation is much less stringent than the forceful rhetoric and policy debate that took place in the House and Senate over the past few months. As a result, the short-term implications of the new regulations for the US banking industry will be muted, and the longer-term implications should result in a more stable banking and financial system. That said, the complexity of the new regulations will present a challenge for many financial organisations and, in analysing the legislation, it is clear that the changes will produce both winners and lo...