–Senate Agriculture Chief Expects Her Bill To Be ‘Merged’ With Dodd’s
–Sen. Lincoln: Set To Offer ‘Strongest Wall Street Reform Bill’
–Must Move OTC Derivatives ‘Out Of The Darkness’

By John Shaw

WASHINGTON (MNI) – Senate Agriculture Committee Chairman Blanche
Lincoln said Tuesday that she will present “the strongest Wall Street
reform bill to date” tomorrow, adding that she expects her panel to
approve her bill Wednesday.

At a briefing, Lincoln said she has been given “assurances” by
Senate Majority Leader Harry Reid that her bill will be “merged” with
the bill drafted by Banking Committee Chairman Chris Dodd.

The comprehensive package, Lincoln said, will go to the Senate
floor “as soon as we can.”

Lincoln offered few specifics about her bill, saying it imposes
“stringent reporting requirements on OTC derivatives, ends Too Big To
Fail, prohibits future taxpayer funded bailouts, and requires “100%
transparency” of OTC derivatives trading.

Her bill, she said, would take OTC derivatives “out of the darkness
and into the light of day.”

Lincoln said her bill would require banks to spin off their swaps
desk into separate enterprises.

“If you want to be a bank, be a bank,” she said, when asked to
explain this provision.

Many Republicans have said this prohibition on banks goes too far.

Lincoln said it’s important to require OTC markets to adopt aspects
of the regulated markets such as mandatory clearing through derivatives
clearing organizations, and trading on exchanges or exchange-like
facilities.

Dodd continues to say that he is open to reaching a bipartisan
agreement with Republicans on financial regulatory reform, adding that
he expects the Senate debate on the issue to begin Wednesday or
Thursday.

Reid has said he wants the Senate to pass a regulatory reform bill
by the end of May.

President Obama has said that financial regulatory reform is one of
his chief goals for the rest of this legislative session.

On a separate matter, the Senate voted Tuesday to confirm Lael
Brainard as Treasury undersecretary for international affairs.

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

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