Senator Blanche Lincoln, D-Ark., says the Senate Agriculture Committee will move forward swiftly and responsibly to produce bipartisan legislation that will strengthen the nation's financial systems. That was the promise the Senate Ag Committee Chairman made during the committee's second hearing on financial market regulation reform. She reaffirmed that the committee will produce a bipartisan over-the-counter derivatives bill that will provide greater oversight and transparency to the nation's financial markets.
"This is a top priority for the Committee because there is an urgency to act," Lincoln said. "The American people need and deserve financial market regulatory reform in order to restore confidence to consumers and businesses."
The Senate Agriculture Committee has jurisdiction over the nation's futures markets, which are used to determine commodity prices and manage business risks. The committee's bill is expected to be a critical part of broad regulatory reform legislation.
A proposal put forth by the Treasury Department would require end users to clear standardized transactions. The Senate Ag Committee's Ranking Member, Saxby Chambliss, R-Ga., said previous testimony indicates end users believe this would add considerable costs and would likely be passed along to consumers or perhaps prevent their businesses from using swaps as a risk management tool. These same entities were supportive of increased transparency both to the regulator and to the public and seem perfectly willing to endure any additional administrative burden.
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