–Senate Banking Committee Chief Says Talks Continue on Derivatives
–Hoping For Final Vote ‘Early Part of Next Week’
–Sessions Bankruptcy Amend Would Return Too Big To Fail

By John Shaw

WASHINGTON (MNI) – Senate Banking Committee Chairman Chris Dodd
said Democratic leaders are still trying to sort through how to
schedule votes on a raft of pending amendments, adding that final Senate
action on financial regulatory reform is likely to occur next week.

In comments to reporters after meeting with Senate Democrats to
give them an update on regulatory reform, Dodd said there are still a
lot of moving parts.

But he added that he would like a final Senate vote in “the early
part of next week.” Other senators have indicated the final Senate vote
could occur in the later part of the week.

Dodd acknowledged that a number of senators continue to discuss how
the bill’s derivatives section could be adjusted.

“People have been talking about it,” Dodd said, but added that he
has not been part of the talks.

There has been a lot of pressure by Republicans and some Democrats
to challenge the bill’s proposal to require banks to jettison their
derivatives business.

Dodd said he strongly opposes an amendment by Republican Sen. Jeff
Sessions that would create a bankruptcy process for failing non-bank
financial institutions.

Dodd said Session’s language was deeply flawed and would have the
effect of retaining “Too Big To Fail.”

The Senate is voting on that amendment now.

The underlying Senate regulatory reform bill, largely drafted by
Dodd, establishes a new independent Consumer Protection Bureau at the
Federal Reserve Board, creates a process to liquidate failed financial
firms, sets up a council of regulators to oversee systemic risk in the
economy, establishes a regulatory structure for over-the-counter
derivatives, requires hedge funds that manage over $100 million to
register with the SEC and creates a new office within Treasury to
monitor the insurance industry.

** Market News International Washington Bureau: 202-371-2121 **

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