Goldman, Citi Pressured Awaiting Dodd Bill; Volcker Rule On Its Way?

[Stocks-to-Watch]

Markets steepened declines this morning but were regaining ground just before noon, as the Street awaits word on a proposed financial reform bill from Senator Chris Dodd (Dem., Connecticut). That bill is expected to grant sweeping authority to the Federal Reserve Board to regulate institutions with assets over $50 billion.

The Dow Industrials are down 43 points at 10,581, while the S&P 500 is off 8 points at 1,142. The Financial Select Sector SPDR ETF (XLF) is down 16 cents, a fraction, at $15.38, with Goldman Sachs (GS) off $4.28, or 2.5%, at $170.68, JP Morgan Chase (JPM) off 44 cents, or 1%, at $42.71, and Citigroup (C) down 12 cents, or 3%, at $3.85.

Pressuring the stocks is a piece on CNBC just a little while ago, attributed to anonymous sources, saying Dodd’s bill is expected to include provisions known as the “Volcker Rule,” prompted by the lobbying of former Federal Reserve Board chair Paul Volcker, which would prohibit proprietary trading at large financial institutions, and various other substantial restrictions.



Original Article Source by Barrons.com