Bank of America Corp (BAC), JPMorgan Chase & Co. (JPM): Dow (.DJI) Proves Japan Can’t Hold the Market Down

A bill was passed in the House over the past few days that was aimed at excluding trades of derivatives and swaps completed in foreign countries from U.S. regulatory oversight. Since five banks in the U.S. — JPMorgan Chase & Co. (NYSE:JPM), B of A, Citigroup Inc (NYSE:C), Morgan Stanley (NYSE:MS) , and Goldman Sachs Group Inc (NYSE:GS) — control over 90% of the market in these financial instruments, this bill is a big win. Analysts estimate that approximately 40% to 45% of trades are completed overseas, so the new bill’s restriction on oversight would allow the banks greater freedom and keep their businesses competitive.

The bill may not move past the House, but the effort has given the banks and their investors some added confidence that the recent slate of new regulations is being carefully watched and that they have support from friends in high places.

The article Dow Proves That Japan Can’t Hold the Market Down originally appeared on Fool.com is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned — you can contact her here. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase (NYSE:JPM).

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