Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., has raised concerns about a measure in the sweeping bill to overhaul financial regulations that would require banks to divest of their derivatives businesses. Bair said the change could move the development of derivatives contracts beyond regulators' reach. "If all derivatives market-making activities were moved outside of bank holding companies, most of the activity would no doubt continue, but in less regulated and more highly leveraged venues," Bair wrote in a letter to Senate leaders.

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