Politics In a marathon session of more than 21 hours, legislators agreed to a rewrite of Wall Street rules that may crimp the industry’s profits and subject it to tougher oversight and tighter restrictions. To secure agreement, lawmakers reached deals in the final hours on the most controversial sections which restrict derivatives dealing by banks and curb their proprietary trading to shield taxpayer-backed deposits from more risky activities. Banks will be allowed to keep most swaps dealing activity in-house, although the riskiest trading would be pushed out.
China However, it all but ruled out a one-off revaluation or major appreciation, saying there was “no basis for big fluctuations or changes” in the exchange rate. The dollar peg has come under intense fire from abroad as China’s export juggernaut roared back to life, while much of the rest of the global economy remained sluggish and beset by unemployment in the wake of the financial crisis. Just ahead of a G20 summit in Canada, the announcement seemed to be intended to placate critics of China’s currency regime.
