–Senate Majority Leader Reid: ‘Nothing Has Changed’ In Reg Bill
–Senate Minority Leader McConnell: At Better ‘Starting Place’ On Bill

By John Shaw

WASHINGTON (MNI) – After weeks of acrimony and three test votes
this week, Senate Majority Leader Harry Reid and Minority Leader Mitch
McConnell agreed Wednesday evening to formally begin the debate on
financial regulatory reform legislation.

The Senate floor debate will begin Thursday morning.

In comments on the Senate floor, Reid and McConnell agree to begin
consideration of regulatory reform legislation. However, the two leaders
offered different views about what the Senate’s procedural maneuvering
this week had accomplished.

“Nothing has changed” since the Senate began skirmishing on
regulatory reform on Monday, Reid said.

McConnell, however, said, “Much indeed has changed since Monday …
I think we have a better starting place.”

McConnell did not specify what changes had been made in the
underlying bill that was crafted by Senate Banking Committee Chairman
Chris Dodd.

The Senate Agriculture Committee approved a narrower bill last week
that tightens regulation on derivatives. Parts of that bill are expected
to be merged with Dodd’s bill when the formal Senate debate begins.

Speaking after the two leaders exchanged their remarks, Dodd and
Sen. Richard Shelby, the ranking Republican on the Banking panel, spoke
and took a more conciliatory tack.

“We have reached some assurances,” Shelby said, adding “I think
we’ve made some real progress.”

Shelby said he and Dodd agreed there should be no future bailouts,
though they were not able to reach an accord on a consumer protection
agency or on derivatives regulation.

Dodd said he and Shelby have had “great conversations” and reached
some broad understandings.

“We haven’t sealed anything,” Dodd said, adding that he expects
weeks of Senate debate and amendments to work through areas of
disagreement.

“This is a complex area of law … It has to be gotten right,” Dodd
said.

Prior to the agreement Wednesday evening, Senate Republicans voted
three times this week to block a formal debate on the financial
regulatory bill.

The Senate Banking Committee approved Dodd’s regulatory reform bill
March 22 on a party-line, 13-to-10 vote. All Democrats supported the
bill and all Republicans opposed it.

Dodd’s legislation establishes a new independent Consumer
Protection Bureau at the Federal Reserve Board, creates a process to
liquidate failed financial firms, sets up a council of regulators to
oversee systemic risk in the economy, establishes a regulatory structure
for over-the-counter derivatives, requires hedge funds that manage over
$100 million to register with the SEC and creates a new office within
Treasury to monitor the insurance industry.

The House passed a sweeping financial regulatory reform bill in
December.

President Obama has said that financial regulatory reform is one of
his central goals for the rest of this legislative session.

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

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