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 Grassley (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.