Bill would limit banks in derivatives

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Bill would limit banks in derivatives

The Hill – Sen. Sherrod Brown (D-Ohio) wants to limit big banks from dominating the multitrillion-dollar derivatives market.

As Congress and the Obama administration push forward on a broad rewrite of the nation’s financial regulations, Brown is supporting legislation targeting conflicts of interest in the clearinghouses that stand between buyers and sellers of derivatives.

Senate Banking Committee Chairman Chris Dodd (D-Conn.) did not include Brown’s legislation in his financial overhaul bill. Brown offered an amendment before the committee markup, but Dodd did not include it in his manager’s amendment that passed on a party-line vote, 13-10.

Brown’s push could face an uphill battle to win support as the bill heads to the full Senate.

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