[ by Howard Haykin ]

Financial Stocks Worry About Tighter Regulations – they should only know that, what we see is just the beginning of tougher regulations. 

It's mid-morning on Wednesday, the day after Barack Obama's stunning electoral college landslide – though, believe it or not, it was just as some of us expected – over Republican challenger Mitt Romney.  The stock markets are down more than 2%, which is only half as bad as the retreat by financial stocks. 

Some pundits anticipated yesterday that an Obama victory would lead to a Wednesday sell-off, or profit taking from Tuesday's rally. 

Fine, we'll accept that explanation, because the market's longer-term response is what counts.

And Why Is Wall Street Taking It So Hard? Dealbook puts it succinctly, as follows: the election results "mean tougher regulations for Wall Street are here to stay."

A hard pill to swallow - especially with Wall-Street foe, Elizabeth Warren, taking the Senate seat for the Commonwealth of Massachusetts.  But you know what?  The financial sector has already begun to change its "culture of compliance," beginning with putting some compensation arrangements more in line with the rest of humanity. 

Next up, regulators will erect "road obstacles" for the HFT proponents - as in, "high frequency trading."

Onward and upward.  And hold tight - we're expecting a bumpy ride.