–House Majority Leader Sees ‘Very Significant Support’ For Final Bill
–Rep. Hoyer: Rep. Frank, Sen. Dodd See Final Bill By Fourth of July
–Rep. Hoyer: Signals House Will Not Take Up FY11 Budget Resolution

By John Shaw

WASHINGTON (MNI) – House Majority Leader Steny Hoyer said Wednesday
that House and Senate leaders are determined to move quickly to pass a
final financial regulatory bill, adding that he expects it will be
cleared by Congress by the Fourth of July.

At a briefing, Hoyer said both House Financial Services Committee
Chairman Barney Frank and Senate Banking Committee Chairman Chris Dodd
are “confident they can come to an agreement” on regulatory reform in
the coming weeks.

Hoyer said that Frank, as chairman of the House-Senate conference
committee, has set a “very aggressive schedule” to draft a final version
of the bill.

He noted that the House-Senate conference committee on regulatory
reform will hold its first session Thursday.

Hoyer said the House will appoint its members to the conference
committee later Wednesday. The Senate has already appointed its members.

The House passed its regulatory reform bill in December of 2009
while the Senate approved its bill several weeks ago.

The House-Senate conference committee will work to reconcile the
House and Senate regulatory reform bills. Any compromise must then be
approved by the full House and Senate.

Arguably the central issue to be resolved will be how to regulate
the over-the-counter derivatives market. Both the House and Senate bill
require most derivatives to be traded through third parties, but the
Senate bill has fewer exemptions for end-users. Additionally, the Senate
version would force banks to spin off their derivatives units.

The House and Senate bills require expanded audits of the Federal
Reserve Board, but the House version is both more expansive and
intrusive and would include a review of some monetary decisions made by
the Fed.

The two bills also differ on the precise powers of a new consumer
protection entity; the House bill creates a stand-alone agency while the
Senate bill places it within the Fed.

Hoyer said he wants the conference’s deliberations to be televised
on C-SPAN.

The House Majority Leader said there is “very significant support
across the country” for financial regulatory reform.

In other matters, Hoyer said the House will consider the $140
billion tax extender and benefit extension bill when it passes the
Senate.

The Senate has expanded the $113 billion package that was approved
by the House several weeks ago.

Hoyer said deficit concerns continue to influence House Democrats
regarding the size of the package as are the offsets to pay for at least
some of it.

“Clearly, pay-fors are important,” Hoyer said.

Finally, Hoyer hinted once again that House Democrats will not try
to pass a fiscal year 2011 budget resolution which would set broad
five-year spending and revenue goals.

“It’s important to have (spending) targets for Appropriators and
Congress,” he said.

A number of lawmakers have said that Congress could pass a simple
deeming resolution which sets a limit on discretionary spending for FY11
rather than passing a full budget resolution.

** Market News International Washington Bureau: (202) 371-2121 **

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