Sen. Christopher Dodd, chairman of the Senate banking committee, has introduced an amendment that would call for a study into the effects of requiring major banks to spin off their swaps-trading desks. Depending on the outcome of the study, the amendment would delay or eliminate the derivatives measure included in the regulatory-reform bill. Mr. Dodd's amendment is a compromise to a proposal made by Sen. Blanche Lincoln. "The proposed solution gives some breathing room to a heavy-handed provision that would have resulted in more risk in the system," said Scott Talbott, senior vice president for government affairs at The Financial Services Roundtable.
Published in Brief: