5/19/2010

Sen. Christopher Dodd, D-Conn., chairman of the Senate banking committee, 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. Dodd's amendment is a compromise to a proposal made by Sen. Blanche Lincoln, D-Ark. The banking industry has opposed Lincoln's proposal but also scrutinized Dodd's amendment, saying it would leave the future shape of derivatives trading in doubt.

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