A good summation
April 28, 2010 | federal legislation, industry | Comments (0)As they move forward, Democrats still need to resolve internal differences over a section of the bill regulating derivatives, the risky financial instruments that contributed to the economic crisis. The bill goes farther than the administration and the Federal Reserve wants in requiring financial firms to spin off their derivatives trading operations – regulation that could mean loss of billions of dollars in revenue for big Wall Street firms.
By striking the $50 billion fund, senators will need to find a way to make up for that lost revenue to ensure the bill is deficit neutral.
Reid and Dodd have also promised a more free-flowing amendment process than was allowed during the health care reform debate. Both Democrats and Republicans are preparing hundreds of amendments, some of which could be viewed as poison pills that threaten passage. Progressives are expected to propose a series of populist initiatives that could prove politically-difficult to defeat.
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