The Over-the-Counter Derivatives Markets Act of 2009 received a favorable vote from the House Financial Services Committee Thursday. The bill, written by Representative Barney Frank, D-Mass., passed on a vote of 43 to 27. The Frank bill will eventually be combined with a bill expected out of the House Ag Committee. The Ag Committee's bill was introduced by Committee Chairman Collin Peterson, D-Minn., but has yet to receive a markup.
Assistant Treasury Secretary for Financial Institutions Michael Barr called the bill absolutely essential to preserving a strong marketplace. Steven Elmendorf, who represents several major financial institutions and groups, thinks the legislation could keep the lobbyists busy for many weeks since it is the subject of deliberations by at least four committees in the House and Senate, along with floor action in both chambers and then more meetings to reconcile competing bills.
The bill would shift more derivatives trades onto exchanges. The Obama administration and the House Agriculture Committee favor more trading on regulated exchanges to boost transparency in the derivatives market. Still, House Republicans and the financial industry are resisting the change, saying it could reduce the availability of many derivatives.
Powered by iNet Solutions Group ©2011 All Rights Reserved.