–Senate Banking Chief Says He Expects To Debate To Begin Wed or Thurs
–Dispute Over $50B Fund Could Be Resolved in ‘Five Minutes’
–Should ‘Err on the Side of Transparency’ on Deriv Regulation

By John Shaw

WASHINGTON (MNI) – Senate Banking Committee Chairman Chris Dodd
said Monday that he remains open to securing a bipartisan agreement with
Republicans on financial regulatory reform, adding that he expects the
Senate debate on the issue to begin Wednesday or Thursday.

At a briefing, Dodd said he has been in talks with Republicans for
months on financial regulatory reform and is willing to continue
discussions to craft a bill that can attract “broad” support.

“The door is wide open — as it has been,” Dodd said.

“The door is open. It’s never been closed. I’m waiting for that
knock on the door … (But) it’s time now to act,” Dodd said.

At the briefing, Dodd said repeatedly that his decision to include
a $50 billion fund to unwind failing firms was drafted and pushed by
Republican senators.

“This is a Republican suggestion,” he said, but added that “if
there are other ways of doing it” he would be willing to consider any
proposals.

“I’m not rigidly holding on to this,” Dodd said.

He noted that Republican senator Bob Corker said Friday this issue
could be resolved in five minutes of good faith negotiations.

“I suspect he’s right. But we need the five minutes,” he said.

Dodd said he is working with other senators on language in the bill
pertaining to the regulation of derivatives, adding the provisions
should “err on the side of transparency.”

All 41 Senate Republicans have sent a letter to Senate Majority
Leader Harry Reid saying they oppose the Dodd bill and will resist even
an attempt to begin the Senate debate.

Democratic leaders are likely to make motion to begin debating the
bill Wednesday or Thursday. It is unclear if all Republicans are
prepared to vote to prevent even the Senate debate.

The Senate Banking Committee approved Dodd’s regulatory reform bill
on 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.

Reid has said he wants the Senate to pass a regulatory reform bill
by the end of May.

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

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

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