My take:   Politicians congratulate themselves.  Big banks get off easy after powerful lobbying.  Systemic risk is not really reduced.  Fannie and Freddie are still swept under rug and still off balance sheet until after the elections.  More government regulation and paperwork created. Very special Barney video at end.  (BC)

Required reading - thorough and lots of details - Lawmakers Agree on Wall Street’s Biggest Overhaul Since 1930s - Bloomberg BusinessWeek

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(journey into the unknown)  House, Senate leaders finalize details of sweeping financial overhaul - By Brady Dennis - Key House and Senate lawmakers agreed on far-reaching new financial rules early Friday after weeks of division, delay and frantic last-minute deal making. The dawn compromise set up a potential vote in both houses of Congress next week that could send the landmark legislation to President Obama by July 4.  Lawmakers pulled an all-nighter, wrapping up their work at 5:39 a.m. -- more than 20 messy, mind-numbing, exhaustive hours after they began Thursday morning.  "It's a great moment. I'm proud to have been here," said a teary-eyed Sen. Christopher J. Dodd (D-Conn.), who as chairman of the Senate Banking Committee led the effort in the Senate. "No one will know until this is actually in place how it works." ... - Washington Post

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Treasury, Dodd Sell Out To Wall Street - Robert Lenzner - By getting rid of limitations on leverage, Wall Street has raised the odds of another financial crisis. - The most crucial element in the re-regulation of Wall Street has been gutted. At least for now, there will be no limits on how much money Wall Street can borrow to do its business. It's an invitation to dare a new meltdown or financial crisis. The big banks' lobbyists have convinced Treasury and Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, not to support Rep Barney Frank's, D-Mass., insistence on limiting the leverage Wall Street can use to trade securities. - Forbes

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Private Lenders to Keep 5 Percent of Risk Under New U.S. Rules - By Lorraine Woellert - ... Lawmakers exempted many mortgages from the rules after lobbying by brokers and community banks, ... Originators of long-term, fixed-interest-rate mortgages would be among those that would not be required to retain risk. The exemption would not apply to mortgages with risky features such as negative amortization, interest-only payments and balloon payments.  In addition, loans guaranteed by the Federal Housing Administration, U.S. Department of Agriculture and U.S. Department of Veterans Affairs would not be required to retain risk. ... Loans guaranteed by Fannie Mae and Freddie Mac, the mortgage companies taken over by the government, are not specifically exempted in the legislation. ... – Bloomberg

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Banks ‘Dodged a Bullet’ as Congress Dilutes Rules -  By Christine Harper - Legislation to overhaul financial regulation will help curb risk-taking and boost capital buffers. What it won’t do is fundamentally reshape Wall Street’s biggest banks or prevent another crisis, analysts said. - Bloomberg

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(not addressed) The Next Hurdle: Fannie Mae and Freddie Mac - Brian Wingfield -  ... Congress is expected to pass the (financial services) bill, possibly by the July 4 recess. It's likely to be a close vote, particularly in the Senate. But President Obama, who leaves for the G-20 summit Friday, can tell other world leaders gathered in Toronto this weekend that the U.S. is leading the way in financial reform.  There will, however, be two elephants in the room:  mortgage buyers Fannie Mae and Freddie Mac, which the U.S. government has controlled since Sept. 2008. ... -  Forbes

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Will new financial regulations prevent future meltdowns? - By Paul Davidson, Paul Wiseman and John Waggoner, USA TODAY – looks at many points in the bill and asks the question if the points will fix the problem - good read - USA Today

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Barney Frank Brings Additional Unclarity On The FinReg Scam, Punts Again On All Fannie/Freddie Questions - Submitted by Tyler Durden - ... this Bloomberg TV clip is for you. It is also for everyone else who would rather not read the 2,000 pages of FinReg reform yet ... Overall, Barney mumbles about this and that, discusses whether the bill will make banks less profitable (it won't), clarifies the 3% loophole for JPMorgan's investment in Highbridge,  notes the surprising $19 billion bank levy, yet runs like a scolded schoolgirl the second Fannie and Freddie (also known as the one biggest disaster of his career, and the only thing he will be remembered for) are mentioned. ... - Zero Hedge