So far, there is not a wealth of printed articles about the financial reform bill passed a week or two ago, so I am hearing a bunch of stuff that may or may not be true. Even if it is true, it could be overhyped.
#1 The ban on banks investing in derivitives is carefully crafted so as not to tamper with the rights of the five largest banks (who own over $8 trillion in derivitives) to continue to do so.
#2 The big banks (such as the oft-mentioned Bank of America - John H) are sick and tired of implementing onerous and confiscatory policies on their depositors, and then having these depositors upstart their own community banks so they can avoid these practices. The new law essentially makes it impossible for these smaller community banks to compete.
Not a lot of tax subject in the above, so this might be considered Non-Topic. But as preparers we are hard-pressed to be somewhat knowledgeable. Many of my clients are getting to the point where they don't trust bankers any more than attorneys.
#1 The ban on banks investing in derivitives is carefully crafted so as not to tamper with the rights of the five largest banks (who own over $8 trillion in derivitives) to continue to do so.
#2 The big banks (such as the oft-mentioned Bank of America - John H) are sick and tired of implementing onerous and confiscatory policies on their depositors, and then having these depositors upstart their own community banks so they can avoid these practices. The new law essentially makes it impossible for these smaller community banks to compete.
Not a lot of tax subject in the above, so this might be considered Non-Topic. But as preparers we are hard-pressed to be somewhat knowledgeable. Many of my clients are getting to the point where they don't trust bankers any more than attorneys.
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