This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Regulators to Take on Too Big to Fail Banks in 2013: KBW

The bottomline is investors hoping for changes to Dodd Frank are likely to be disappointed. KBW expects the changes to be purely "cosmetic" given Democrats control of the senate. At any rate, any changes are "unlikely to benefit large banks and will be targeted to benefit community banks," says Gardner.

Only 133 rules have been finalized so far under Dodd Frank. Another 133 rules have been proposed but are yet to be implemented, while 132 more are yet to be proposed, even though the deadline for some of rules has already passed.

Gardner expects the Volcker rule, the first wave of nonbank systemically important financial institution (SIFI) designations, heightened prudential standards for bank and nonbank SIFIs, as well as mortgage and risk retention regulations to see the light of day in early 2013.

The analyst also sees a growing role for the Consumer Financial Protection Bureau in 2013, with rules on qualified mortgages likely to be on the top of the agenda. The agency will also likely focus on payday lending and bank overdraft rules by the end of the year.

As for mortgage finance, there may be little progress in addressing the issue of winding down Fannie Mae and Freddie Mac and re-privatizing the mortgage market.

High on Obama's agenda will be replacing FHFA director Edward DeMarco but Gardner wonders if anyone really wants the job. "Part of the reason why there has been no subsequent nomination is the FHFA directorship is not one of the most sought-after jobs in Washington. While housing and consumer groups want to replace Mr. DeMarco with a director who will aggressively pursue principal write-downs on loans held by or backed by the GSEs, finding a person who wants the job and can get confirmed by the Senate is harder than many realize," says Gardner. "We expect that the Administration will try and find a replacement for Mr. DeMarco but we also think he will remain on the job for several months, maybe into the second half of the year."

-- Written by Shanthi Bharatwaj in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs