Bully pulpit

3 May 2010 By James Pethokoukis

Legislators seem to be scrambling to outregulate each other while the White House keeps mum. It defied its liberal base on nationalizing the banks last year and breaking them up. But as controversial amendments, such as those on derivatives, emerge, it may be time to pipe up.

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Context News

A top U.S. banking regulator is concerned with a provision in a bill by Senate Democrats that would require banks to spin off their swaps desks, according to a letter obtained by Reuters on Saturday.

Federal Deposit Insurance Corp Chairwoman Sheila Bair said this could move some of the riskiest parts of banks' business out of the purview of federal oversight. Bair voiced her concerns in a letter to the two senators in charge of writing rules for the $450 trillion swaps market, Senate Banking Chairman Christopher Dodd and Senate Agriculture Chairman Blanche Lincoln.

This week, the Senate is expected to start debating and changing the Democrats' bill, which would impose new rules for Wall Street and try to ensure better protections for consumers and investors.

Context News

A top U.S. banking regulator is concerned with a provision in a bill by Senate Democrats that would require banks to spin off their swaps desks, according to a letter obtained by Reuters on Saturday.

This week, the Senate is expected to start debating and changing the Democrats' bill, which would impose new rules for Wall Street and try to ensure better protections for consumers and investors.

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