Financial reform bill not expected until next week

Senate Banking Committee Chairman Chris Dodd (D-Conn.) is not expected until next week to unveil legislation overhauling the nation's financial system.

Senate aides and industry lobbyists said the legislation, which had been expected this week, would likely be unveiled next week. Dodd and Sen. Bob Corker (R-Tenn.), a freshman senator, have been attempting to craft a bipartisan compromise bill over the past few weeks.

Corker told The Hill earlier this month that an administration proposal, dubbed the "Volcker rule," would not be a major focus of the discussions. The rule would prohibit commercial banks from maintaining proprietary trading businesses and was proposed by Paul Volcker, the former Federal Reserve chairman and administration adviser.

Dodd had expressed concern that the debate over the rule would threaten progress on the underlying financial overhaul bill, which includes new regulations to limit systemic risk, wind down failing financial firms, regulate the multi-trillion dollar derivatives market and bolster consumer protections.

The thorniest aspect of the debate has centered on an administration proposal for a new Consumer Financial Protection Agency (CFPA) that would regulate products such as home loans and credit cards. Republicans unanimously oppose a standalone agency and some moderate Democrats are wary of the proposal.