Washington Daybook: Financial Gain

Written by Jim O’Connell

Financial firms such as JPMorgan Chase would benefit from a Mitt Romney victory in the presidential election, analysts say, and Dodd-Frank Act regulations that take effect today might show why.

The rules require companies to begin tallying derivatives trades to determine whether they cross an $8 billion threshold that makes them subject to heightened capital and collateral standards that could erode profits.

Experts say JPMorgan, Goldman Sachs and other financial firms will be subject to the higher standards. Rules and supervision of banks would be more “balanced,” in a Romney administration, Credit Suisse analysts wrote this week.

Financial stocks are up 24 percent in 2012, and JPMorgan today posted a third-quarter profit that beat analysts’ estimates on gains from mortgages and trading.

Also today, Education Secretary Arne Duncan answers Twitter questions about federal student aid and tools available to help students and families make informed decisions about financing higher education. Deputy Assistant Navy Secretary Tom Hicks delivers remarks on “The Real Cost of Biofuels and other Navy Energy Initiatives” at an Institute for Defense and Government Advancement summit on the military future energy needs.

And Secretary of State Hillary Clinton delivers an address on U.S. strategic engagement in North Africa at the Center for Strategic and International Studies as the Obama administration continues to take heat over its reaction to the deadly Sept. 11 attack on the U.S. consulate in Benghazi, Libya.

With assistance from Cary O’Reilly.

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