Here's what I think one should expect to happen/be announced tomorrow:
Expansion of Fed's powers to regulate large market participants; Some fear it will give the Fed, not responsible to Congress, too much power....
Administrative power to break up systemically important companies, especially those in insurance.
Creation of new financial regulator responsible for overseeing consumer related financial products, for strong investor protection.
Also look for the Treasury to propose new rules requiring loan originators to retain some of securitized loan credit on books, stricter accounting, and standardized contracts.
Not surprisingly, already there are complaints that rules will reduce market participation which helps make credit accessible. Treasury likely to contend new rules will establish firm footing. We'll see what happens........
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