EXECUTIVE VIEW-Banks size up reform bill impact

NEW YORK, July 20 (BestGrowthStock) – The final passage of landmark
financial regulatory reform coincided with a lackluster batch
of earnings from some of the top U.S. banks, many of whose
executives indicated they are scrambling to assess the lasting
effects of the new regulations.

For more coverage of the financial reform overhaul:
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FRED TOMCZYK, CEO, TD AMERITRADE HOLDING CORP (AMTD.O: ):

“As with most bills that are the result of a political
process, there are some good things and there are probably some
things that are not related to the crisis. The capital rules
and liquidity rules which are in Basel III are important, and I
also think some of the things on systemic risk and regulation
are good. But that’s not to say that all of them are good.

“Directly, there’s nothing really in the bill that impacts
us. There is one area that is singled out for future study and
that is whether the standard for broker dealers should be the
fiduciary standard or the suitability standard, when you’re
giving personalized investment advice. We don’t have a strong
bias either way as long as, if it goes with a fiduciary
standard, it shouldn’t be a watered down fiduciary standard.”

VIKRAM PANDIT, CEO, CITIGROUP INC (C.N: )

“On the debit interchange, debit purchase is not a
significant business for us, our volumes show that, and we’re
about one-tenth of the volume size of market leaders.

“Another key point on consumer reform is that our regional
consumer bank is much more international than most. Fifty-three
percent of first-half revenues came from outside the U.S. and
they reflect a substantial part of our profitability.

“On the institutional side on prop trading and funds we
have continued to sell many prop trading and fund businesses
and assets. And on the derivatives side — the vast, vast
majority of the derivatives we did in the bank we can continue
to do in the bank. Our bookings were already in line with the
reform thinking.”

BRIAN MOYNIHAN, CEO, BANK OF AMERICA CORP (BAC.N: )

“We have two levers to pull, either through fees or the
spread, and we are working on all those dimensions. Whether
it’s new account fees or higher account minimums, all these are
on the table. But it will take time to retool the whole
franchise.

“Because we’re customer driven, (global markets chief) Tom
Montag has been pushing out the vestiges of our proprietary
trading business. What we do is all customer driven, so we
don’t see much of an impact. There’s actually some benefits to
it, in terms of counter-party risk that will help our business.
It has not been a primary concern for us.”

MIKE CAVANAGH, CHIEF EXECUTIVE OF TREASURY AND SECURITIES
SERVICES, JPMORGAN CHASE & CO (JPM.N: )

“It’s not like the potential financial impacts are going to
be here tomorrow. This will gradually affect our results to
whatever degree it does. What effect it does have is clearly
going to be a result of how clients respond in terms of what
they choose to — what services they avail themselves of and at
what volume levels — so that’s a little bit of guesswork at
this stage and of course whatever impacts there are going to be
is going to be in part mitigated at least through adjustments
to business models or pricing of products and services and in
many cases in our businesses the benefit that our shareholders
will get back by having capital released as a result of some of
the changes in these — in this legislation.”

Stock Market Trading

(Reporting by Maria Aspan, Jonathan Spicer, Joe Rauch and
Elinor Comlay. Editing by Robert MacMillan and John Wallace)

EXECUTIVE VIEW-Banks size up reform bill impact