By Jay Heflin - 04/21/10 03:51 PM EDT
The legislation crafted by Sen. Blanche Lincoln (D-Ark.), the panel's chairwoman, would require nearly all derivatives to be subjected to a clearinghouse.
Sen. Chuck GrassleyChuck GrassleyClinton email headache is about to get worse Ten senators ask FCC to delay box plan Overnight Cybersecurity: Guccifer plea deal raises questions in Clinton probe MORE (Iowa) was the only Republican to support the bill. Other Republicans opposed the bill, in part, because they felt requiring all derivatives trades to go through a clearinghouse would prove too costly.
The bill now heads to the Senate floor for final consideration. It is expected to be rolled into a Wall Street reform bill written by Banking Committee Chairman Chris Dodd (D-Conn.) that has dominated the Senate's politics this week.
Under Lincoln's legislation, the Treasury Department will determine what derivatives trades must go through a clearinghouse. It also would force banks to divest in derivatives trades if they want to be eligible for federal assistance. The bill also requires that foreign trades go through the clearinghouse.