Dodd tries to gut derivatives bill
By CARRIE BUDOFF BROWN | 5/18/10 8:14 PM EDT
With Sen. Blanche Lincoln in Arkansas fighting for her political life, Senate Banking Committee Chairman Chris Dodd (D-Conn.) quietly introduced an amendment Tuesday gutting her plan to crack down on derivatives trading.
The Wall Street reform bill includes Lincoln’s plan to ban banks from trading most derivatives, the complex financial instruments that contributed to the 2008 economic crisis. But some Senate Democrats, as well as administration officials and Wall Street banks, have lined up against the restriction, saying it would put the trades out of the reach of regulators.
Dodd’s proposal, which aimed at resolving those differences, would delay implementation of the ban by two years while a federal council of regulators studied it — a move that would likely prevent the prohibition from ever going into effect. He was required to submit the amendment by noon Tuesday for it to be considered ahead of final passage.
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