Financial overhaul at a glance

Here are significant provisions of the legislation to overhaul financial regulations.

CONSUMER PROTECTION

Bill would: Create an entity to write and enforce consumer protection rules on mortgages, credit cards and other financial products.

Key differences: House version creates an independent agency and largely exempts auto dealers from oversight. Senate version creates a bureau in the Federal Reserve and does not exempt auto dealers.

DERIVATIVES

Bill would: Require most derivatives to be traded on public exchanges and through central clearinghouses, which would require collateral to cover deals that go bad.

Key differences: House version has broader exemption from clearinghouse rules for non-financial firms that use derivatives to hedge commercial risks. Senate version requires commercial banks to spin off derivatives businesses.

‘TOO BIG TO FAIL’

Bill would: Give government power to seize and dismantle large firms on the brink of bankruptcy if their failure would threaten the economy.

Key differences: House version creates a $150-billion fund, prepaid by large financial institutions, to pay for dismantling seized firms. Senate version has no prepaid fund, but would recoup costs later from the financial industry.

FINANCIAL INDUSTRY OVERSIGHT

Bill would: Create a council of regulators to oversee the financial system for signs of risk. Appoint the Federal Reserve to regulate large firms.

Key differences: Senate version gives the Federal Reserve power to regulate the fees that banks charge merchants for processing debit card transactions. House version does not.

EXECUTIVE COMPENSATION

Bill would: Grant shareholders a non-binding say-on-pay vote; give Securities and Exchange Commission power to grant shareholders proxy access to nominate directors; require publicly traded companies to have compensation committees with independent directors.

Key differences: No major differences.