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Bloomberg: Lawmakers Reach Compromise on Financial Regulation

Authors: Alison Vekshin, and Phil Mattingly
June 26, 2010

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Alison Vekshin and Phil Mattingly offer a look at the recent provisions agreed on by U.S. lawmakers in the sweeping reform of Wall Street's rules.

The U.S. Congress is on pace to deliver a sweeping re-write of Wall Street's rules to President Barack Obama by July 4, meeting the deadline lawmakers set for themselves.

House and Senate negotiators, after a marathon 20-hour session, early yesterday approved a bill aimed at increasing oversight and regulation of the U.S. financial system. They brokered last-minute deals on a ban on proprietary trading by banks and oversight of the derivatives market.

The House and Senate are scheduled to vote on the measure, which congressional leaders have said will not be further revised or amended, by the end of next week.

What follows are the scope, impacts and impetus for some of the major provisions, based on the language lawmakers agreed to early this morning in Washington:

‘Volcker Rule'

The Obama administration's proposal to ban banks from proprietary trading, nicknamed the Volcker rule after former Federal Reserve Chairman Paul Volcker, was softened by Senate negotiators.

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