Divided Dems
May 4, 2010 | federal legislation, industry | Comments (0)Interesting article just popped up in The Hill:
The biggest quandary Democrats face is how to regulate the $600-trillion-plus derivatives market.
Senate Agriculture Committee Chairwoman Blanche Lincoln (D-Ark.) has put forth a proposal that would require the dealing of derivatives to be reported publicly and, more controversially, would require big banks to spin off their derivatives-trading business.—————————————–
Sens. Jeff Merkley (D-Ore.) and Carl Levin (D-Mich.) plan to offer an amendment that would bar commercial banks from engaging in proprietary trading.
The pending legislation would allow federal regulators to make allowances for banks to bet their own capital on trades.
The Merkley-Levin proposal would garner the support of many liberals but would also run afoul of New York lawmakers and others with constituents in the financial services industry.
Reid said Tuesday that he wants votes on a lot of amendments but said a vote on final passage will happen next week.
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