–House Speaker: Sees ‘General Support’ In House For Volker Rule
–Seeking ‘Common Ground’ On OTC Derivative Regulation
–More Than ‘One Issue’ To Resolve on OTC Regulation
–Met Wednesday With Sen. Lincoln On Derivative reg

By John Shaw

WASHINGTON (MNI) – House Speaker Nancy Pelosi said Thursday that
there is “general support” among House Democrats for including a strong
version of the Volcker rule in the final financial regulatory reform
bill.

At a briefing, Pelosi said support for the Volcker rule has grown
over the course of the year, adding that it is now receiving a “much
bigger reception” in Congress.

Pelosi said she is encouraged by the work of the House-Senate
conference committee on regulatory reform, saying the panel has been
successful in “narrowing the differences” between the House and Senate
bills.

Pelosi said the negotiators are still working for “common ground”
on regulating over-the-counter derivatives.

She said the OTC derivative regulatory issue is complex, with a
number of matters to decide.

“There is not one issue,” she said.

Pelosi said she met with Sen. Blanche Lincoln Wednesday to discuss
OTC derivative regulation.

On other matters, Pelosi said she is frustrated the Senate has been
unable to pass its version of a tax extenders and benefit expansion bill
so the House can take final action soon on the measure.

The House passed a $113 billion package several weeks ago and the
Senate has revised the package several times.

Senate Majority Leader Harry Reid said Thursday he is trying to get
the Senate to clear its new $112 billion tax cut and benefit expansion
bill.

Pelosi said it’s “clear” the Senate will not be able to pass its
bill this week.

The underlying Senate bill would extend about a dozen tax cuts that
expired at the end of last year, expand unemployment benefits, offer
assistance to states for Medicaid programs and provide an extension of
current Medicare payments for doctors, the so-called “doc fix.”

Pelosi said the House may pass Thursday the six-month “doc fix”
bill which the Senate cleared last week.

Finally, Pelosi said the House will soon take up a war spending
bill that includes funds for the wars in Iraq and Afghanistan and a host
of domestic emergencies.

The Senate approved several weeks ago a $59 billion supplemental
spending bill, with money for the wars, the Gulf of Mexico oil spill,
relief assistance for Haiti and FEMA to replenish its funds to deal with
natural disasters.

Some House Democrats want to add about $23 billion so states will
be able to avoid large scale teacher layoffs.

Pelosi said it’s “important for us to pass it (the emergency
spending bill) before the Fourth of July.”

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

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