I wasn't expecting this.
According to the AP, Dodd has agreed to add the stronger language that is in Lincoln's derivatives bill.
http://www.etaiwannews.com/...
I wonder what caused this to happen. Geithner was against this and the conventional wisdom was that Dodd was not going to add Lincoln's stronger derivatives language in order to entice Republicans to come aboard.
Well it appears that the Democrats are holding strong and want the stronger language.
A Democratic official familiar with Senate banking negotiations says a provision that would force banks to spin off their derivatives operations will be incorporated into sweeping regulatory legislation despite Obama administration misgivings.
The provision would cost the largest U.S. banks billions of dollars in business. In an agreement struck Sunday, Banking Committee Chairman Christopher Dodd agreed to replace his proposed restrictions on derivatives with those of the Senate Agriculture Committee, chaired by Arkansas Democrat Blanche Lincoln.
Derivatives are financial products such as corn futures or stock options whose values depend on the values of underlying investments. Companies use them to hedge against risks, such as interest rate swings or oil price spikes. Derivatives also became vehicles for speculation and helped trigger the financial crisis.
Of course the devil is in the details and we will see what Dodd has to "weaken" in order to get the 60th vote but this is promising.
Perhaps it has something to do with the fact that Senator Grassley did vote for the Lincoln's derivatives bill in committee and Senator Snowe signed along with Democratic Senators a letter to Reid NOT to put weak derivatives language into the bill.