–Next, House-Senate Conference Committee To Craft Final Version of Bill
–Bill’s Passage Follows Weeks of Debate, Votes on Amendments

By John Shaw

WASHINGTON (MNI) – After weeks of fierce debate and consideration
of a slew of amendments, the Senate voted Thursday to approve a sweeping
financial regulatory reform bill.

The bill, which has been called the most comprehensive overhaul of
financial regulation since the Great Depression, was approved on a 59 to
39 vote.

The House approved a sweeping bill in December that differs from
the Senate version in a number of ways.

A House-Senate conference committee will be convened soon to draft
a final version of the bill which must then be cleared by both chambers.

House Financial Services Committee Chairman Barney Frank said
earlier Thursday that he would like a final bill to be approved and sent
to President Barack Obama by July 4th.

Earlier in the day, the Senate voted 60 to 40 to end the debate on
regulatory reform bill.

The Senate’s regulatory reform bill, largely drafted by Banking
Committee Chairman Chris 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.

Senate Republicans said they oppose major sections of the bill,
including those that deal with the Consumer Protection Bureau and the
regulation of OTC derivatives.

Sen. Richard Shelby, the ranking Republican on the Banking
Committee, said he is also troubled that the bill does not include
reforms of Fannie Mae and Freddie Mac.

“The GSEs should have been our primary focus,” Shelby said.

Shelby also said that the bill’s derivatives provisions would
“chase derivative activity overseas.”

Dodd has said the bill goes a long way to stabilize the U.S.
financial system and make a future financial crisis less likely.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$,MT$$$$]