I think the big guys are going to benefit more because of the nature of regulation. Regulation routinely turns into collusion between government and the big players in the industry under regulation to drive smaller players from the industry and bar entry of new players.
The regulations set up hurdles that become fixed costs of doing business. The larger the player, the more easily the fixed costs are amortized.
The vampire squid Goldman Sachs is huge in their industry.
This law also outright bars small players, such as maybe a furniture company, from engaging in risky financial endeavors, such as offering payment plans.
This law is nothing but protection for Goldman Sachs and other huge financial players at everyone else’s expense.
Yep. The government will define and regulate what is "risky" and how to "protect" you from it, in return for more of your taxes and fees and limiting your (consumer and investor) financial options. See the link in my first post comment, and you'll see exactly what the scheme is behind the "reform" bill.
The SEC case against Goldman is being used because of GS high visibility, and with the hope to attract "conservatives" and Republicans who may confuse this for "let's get Goldman Sachs and other rich liberal bastards" bill. This will institutionalize TBTF players at everyone's expense for the benefit of the rich and government elite.
Off Wall Street, Worries Over Financial Bill Abound - CNBC / NYT, 2010 April 27, by Eric Lichtblau and Ron Nixon
Mars, the maker of M&M’s and Snickers, wants to make sure it can continue dabbling in the derivatives market to protect the price of sugar and chocolate for its candies. Harley-Davidson is worried that its dealer-financed loans to bikers will fall victim to new federal financing regulations. And eBay is concerned about possible restrictions on PayPal, a subsidiary, in moving money in the Internet marketplace. .....
Even über-rich Democrat Warren Buffett wants exemptions from this bill for his Berkshire Hathaway before giving his blessing to this bill, with Ben Nelson (D-NE) doing his bidding.
Democrats Reject Warren Buffett's Bid for Derivatives Exemption - CNBC /WSJ, 2010 April 26, by Alex Crippen