Deal Near on Financial Reform Bill

Submitted by Jorina Fontelera on Fri, 06/25/2010 - 10:22

After a 20-hour marathon session by members of a House-Senate conference committee, the negotiators reached an agreement at 5:39 a.m. Friday to approve the biggest overhaul of U.S. financial regulations.

The two sides settled on the two most contentious parts of the financial regulatory overhaul with the House conferees voting 20 to 11 to approve the bill and Senate conferees voting 7 to 5 to approve, the New York Times reports. The approved proposals would restrict trading by banks for their own benefit, also known as the Volcker Rule, and require banks and their parent companies to isolate much of their derivatives activities into a separately capitalized subsidiary, the Times continued.

According to the Times, the Congressional Budget Office estimated the bill would cost approximately $20 billion over 10 years. The committee agreed to pay for the bill by imposing an assessment on large financial institutions, the Times noted.

The committee approvals opened the doors for both houses of Congress to vote on the full bill next week. Legislators aimed to have the final financial regulatory bill approved and delivered for the president’s signature by the 4th of July.

Stay tuned for updates on this developing story.

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