Published on Wed, Mar 03, 2010 at 10:09 | Source : Reuters
Updated at Wed, Mar 03, 2010 at 15:24
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US financial reform bill summary under way
A summary of a deal on US financial regulation reform between two key senators is apparently being drafted, policy analysts at investment advisory firm Capital Alpha Partners said on Tuesday.
A summary of a deal on US financial regulation reform between two key senators is apparently being drafted, policy analysts at investment advisory firm Capital Alpha Partners said on Tuesday.
Senate Banking Committee Chairman Christopher Dodd, a Democrat, and Republican Senator Bob Corker have been working on a bipartisan bill for weeks meant to overcome disputes on an issue of high importance to the Obama administration.
"As of this afternoon, a three-page summary of an emerging Dodd-Corker deal apparently was being prepared to circulate, although we have not seen it yet," said Charles Gabriel and Joe Engelhard, both analysts at Capital Alpha, in a research note.
The Dodd-Corker deal includes a proposal to put a new government watchdog for financial consumers in the Federal Reserve, according to the analysts.
Another component calls for forming a "hybrid resolution fund" for financing the dismantling of large financial firms that get into trouble, they said.
Some money for the fund would be fronted by large firms, held by the Federal Deposit Insurance Corp, and invested in Treasury securities banks could keep on their balance sheets, with insurance companies partly exempt, they said.
The Federal Reserve, as the analysts described the deal, would retain its supervision of large bank holding companies.
