At a museum near the U.S. Capitol three weeks ago, 700 guests sampled bratwurst and vodka and watched the Olympics on a mammoth screen. From the second floor, Comcast Corp.’s David Cohen addressed the crowd, which included the Russian ambassador and a White House official.
Of all the new rules for Wall Street being considered by Congress, few have the potential impact of a derivatives plan that emerged from nowhere and, to the surprise of its authors, has so far survived the debate.
U.S. Representative Barney Frank , who will lead congressional talks to produce a financial-regulation bill, said Senate language that would require commercial banks to wall off their swaps-trading operations “goes too far.”
Federal Deposit Insurance Corp. Chairman Sheila Bair is opposing a Senate measure that could cut off privileges to banks like Goldman Sachs Group Inc. and JPMorgan Chase & Co. that don’t segregate swaps trading units.
Senator Blanche Lincoln ’s measure requiring banks to push their swaps trading desks to separate units will be in the final financial-regulation bill in some form, Representative Barney Frank said today.