Financial Reform May Hurt More Than Banks: Strategist

The financial regulation debate will begin today in the US Senate, with lawmakers still divided on issues including derivatives regulation and consumer protection. Some experts say the bill’s reach may go beyond the big banks — and could hit companies that investors may not expect.

David Katz, chief investment officer at Matrix Asset Advisors, and Neil Hennessy, portfolio manager and chief investment officer at Hennessy Funds, shared their insights.

“It’s going to hit everybody,” Hennessy told CNBC.

“What’s going to stop the taxpayers from paying for other mismanaged companies in the future? What about Wal-Mart, IBM or UPS?”

“I think it’s an issue because you don’t know what the ramifications are,” he said.

Katz' Counterpoint: 'More Attractive'

In the meantime, Katz said he is not concerned about the new regulations in re industrial America.

“We think aggregate businesses are going to continue to recover. And looking at what’s going to drive individual stock prices, we think it’s going to be earnings, the economy and what’s happening overseas in Europe,” he said.

Katz said the European crisis is going to make the Asian and the U.S. markets “more attractive” over the next few years.

More Point/Counterpoint:

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Top Financials:

Goldman Sachs

JPMorgan Chase

Morgan Stanley

Citigroup

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Disclosures:

No immediate information was available for Hennessy or Katz.

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