The financial reform bill "could have been worse," said Matt McCormick, banking analyst and portfolio manager for Bahl & Gaynor Investment Counsel. (See his stock recommendations, below.)
McCormick told CNBC Friday that most experts think the final version of the bill will not affect derivatives, which are often considered riskier bets.
Therefore, "in the short term, I think it will be somewhat good for banks," he believes.
"They were able to avoid some of the more onerous provisions of the bill. As it looks like [reform of] derivatives will not occur, it will be some watered-down version of it," he added.
McCormick said the bill was clearly a message to the financial industry:
"The politicians just wanted to stick it to Wall Street and do something to mitigate risk. But, ultimately, it will be unsuccessful," McCormick said.
"It's an out-and-out farce that the GSEs* were not included," added McCormick.
"Investors should look at it as being more bureaucratic and less onerous. It could have been worse," McCormick said.
Procter & Gamble
*GSEs: government-sponsored enterprises, e.g., Fannie Mae , Freddie Mac .
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Disclosure information was not available for McCormick or Bahl & Gaynor.