–Hill Conference Panel To Reconvene at 5 PM; Expected To Tap TARP Funds
–Democratic Leaders Plan To Revise Reg Reform Bill

By John Shaw

WASHINGTON (MNI) – The House-Senate conference committee on
regulatory reform legislation will reconvene at 5 p.m. Tuesday and the
panel is expected to assemble a different funding package in an attempt
to secure the votes needed to pass the legislation.

As the House-Senate conference committee was winding down Friday
morning, Senate Banking Committee Chairman Chris Dodd and House
Financial Services Committee Chairman Barney Frank offered a $22 billion
package of offsets to pay for the cost of the bill over a decade as
estimated by the Congressional Budget Office.

Under their plan, about $19 billion over five years would be raised
through assessments on large financial institutions and hedge funds.
Firms with assets of $50 billion or more and hedge funds managing assets
over $10 billion would have to pay into the fund.

This was added, the lawmakers said, to avoid any budgetary points
of order that could derail the legislation.

However, that funding package has been cited-by several Senate
Republican senators as the reason they are reassessing their support for
the final bill. Four Senate Republicans voted for the Senate’s
regulatory reform bill in late May.

One Republican senator, Scott Brown, has said he now will oppose
the regulatory reform package because of the inclusion of the $19
billion fee.

Two other Republican senators, Susan Collins and Olympia Snowe of
Maine, have indicated they are displeased with the $19 billion fee and
are rethinking their support of the bill.

Democratic leaders are now expected to assemble a funding package
that taps funds from TARP.

They believe this should be sufficient to secure the necessary
support in the House and Senate, possibly this week.

The House-Senate conference committee approved Friday legislation
which would make the most sweeping changes to the U.S. regulatory system
since the Great Depression.

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

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