Deficit would be reduced $21 billion under financial reform bill

The federal budget deficit would be reduced by $21 billion over the next 10 years under a financial regulatory reform bill being negotiated in the Senate. 

The bill would reduce the deficit between 2011 and 2020 by charging financial institutions to create a fund that would unwind, or liquidate struggling firms, according to a Congressional Budget Office cost estimated obtained by Reuters.  

Senate Banking Chairman Chris Dodd (D-Conn.) and ranking member Richard Shelby (R-Ala.) have spent most of the week negotiating the final details of a bill that prevent another financial sector collapse, end bailouts and the 'too-big-too-fail' mentality within the system.