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Thursday, Mar 28, 2024

Congress Approves Sweeping Financial Reform

Capping more than a year of legislative effort, the U.S. Congress approved sweeping financial reform July 15, leaving few corners of the financial industry untouched. Once President Barack Obama signs the bill into law, the banking industry will have to contend with tighter regulations that crack down on risky trading, enhance consumer protections and generally seek to avoid a repeat of the financial crisis of the past two years. Under the 2,300-page bill, mortgage brokers, student lenders and other financial firms will have to answer to a new consumer-protection authority. Regulators will also have more power to dismantle troubled firms. The bill gives the Securities and Exchange Commission new oversight over hedge funds and credit rating agencies, and requires large companies to provide “safety nets” to ensure a safe and accountable shut down should the company fail. The financial overhaul also impacts the local entertainment industry, as the bill includes a provision inserted at the behest of the major studios that bans trading contracts based on movies’ box office performance. The studios said trading in box office futures could create negative publicity before a movie opens and would be easily manipulated, while backers said they would be a valuable financial tool for the industry. “Speaking on behalf of a coalition that includes the Directors Guild of America (DGA), the Independent Film and Television Alliance (IFTA), the International Alliance of Theatrical Stage Employees (IATSE), the Motion Picture Association of America (MPAA) and its member companies, and the National Association of Theatre Owners (NATO), I want to thank the Congress for approving this measure,” said Bob Pisano, interim CEO and President of the Motion Picture Association of America, Inc, in a statement.

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