What is Congress doing to U.S. banks and borrowers?

Reaction to last night's passage in Washington of S-3217, the Financial Reform Act:

"Consumer banking... is finally dead... Fat margins and legislverage have been legislated out of the (home loan and crdit card) business." Banks are under pressure to lend to businesses, instead: "More commercial lending fits with public poilcy goals to encourage small and medium enterprise lednding and further stimulate the economy and job creation... This could favor banks.. such as Wells Fargo." -- David Hendler, ceo, CreditSights Inc.

"Very dangerous legislation... It reduces the American banks' ability to compete... Financial legislation is killing the markets, not the European debt issue... The government has been destroying confidence...  The lunatics are truly in control of the asylum. - Richard X. Bove, analyst Rochdale Securities

"The senate decided NOT to toughen the Volcker Rule (which effectively bans banks from trading securities) before passage. In another positive development...  (Democratic leaders have reportedly promised that too-big-to-fail limits are being)  watered down and potentially exempt insurance companies, mutual funds and trusts.... It is easier to make controversial changes to a bill in conference... They can avoid a direct vote on specific controversial provisions." -- Paul J. Miller Jr., analyst, FBR Capital Markets

"Politicians... are showing a renewed resolve to tighten their grip on a broad range of financial services and investment banking... Remain neutral." - Kurt E. Reiman, investment strategist, UBS Financial Services Inc.,

"The Act... protects families and small busineses from unfair financial practices and guards against regulatory lapses like those that led to thelargest taxpayer-funded bailout in US history... (The House-Senate reconciliation committee) must ensure these rules are applied to all lenders - including auto dealers."  -- Michael Calhoun, Center for Responsible Lending

"The bill has provisions, for example, governing majority voting by shareholders. That's the first time we're seeing that in federal law. The net result is to chip away at the state courts and run those cases into federal court. I'm sure the Delaware corporate bar is on this." -- Francis G.X. Pileggi, attorney, Fox Rothschild

"I am disappointed the Senate did not pass a stronger bill." - Sen. Edward "Ted" Kaufman, D-Del.