In a big week for investors, advisors, and their clients, there likely will be some movement in Congress on legislation from Barney Frank’s House Financial Services Committee on institutions that are “too big to fail (see The New York Times report on the Administration’s decision to “rein in” those institutions). That same committee will be marking up several bills on October 27 dealing with financial services reform, including the Investor Protection Act of 2009, and will hold hearings on October 29 on the ongoing systemic regulation issue. Finally, on October 30, the Committee will hold hearings on the Overdraft Protection Act.
You can read a Wall Street Journal Op-Ed by Sandy Weill and Judah Kraushaar on their vision of how financial services reform should be implemented.
In the Senate, on October 28 the Banking, Housing, and Urban Affairs subcommittee will explore dark pools, flash orders, and high frequency trading; and the Aging Committee will examine 401(k) target date funds. On October 29, the Environment and Public Works Committee will hold hearings on climate change legislation, while the Health, Education, Labor, and Pensions Committee will examine “helping workers preserve retirement security through a recession.”
Many large companies report third quarter earnings this week; of particular interest to advisors will be TD Ameritrade on October 27, and E*Trade on the same day. Two real estate companies’ earnings may give a clearer picture of the commercial real estate market: Boston Properties Inc. reports on October 28, and Simon Property Group on October 30 before the market opens.
GDP numbers for the third quarter will be released on Thursday morning, October 29 by the Bureau of Economic Analysis; the consensus is that it will show economic growth occurred during the quarter, officially ending the recession. Later that morning, the Joint Economic Committee of Congress will hold hearings on the impact of the stimulus on the economy, featuring the director of the BEA.