Banks in CrossHairs of Financial Regulation Bill

The financial sector (XLF) dropped lower Monday after the unveiling of Senator Chris Dodd's financial regulation plan. The new financial regulation plan would create a nine member Financial Stability Oversight Council that would regulate financial institutions deemed "too big to fail" According to the Associated Press, "The bill would place large, interconnected financial institutions such as insurance conglomerate American International Group under the supervision of the Federal Reserve." Dodd's plan would "approve the break up of large complex companies if they pose a grave threat to the to the nation's financial system." Dodd's plan would directly impact many of the large money center banks. The big banks have been under pressure all day. The Financial Services ETF (XLF) has been negative all day currently trading at $15.48. The nation's largest bank, Bank of America (BAC) dropped 0.42% to $16.78. JPMorgan Chase (JPM) is down 0.53%, trading at $42.92. Wells Fargo (WFC) shares have bucked the negative banking action and have risen 0.57% to $29.80.