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Inside Washington (04/21/2010)
* WASHINGTON (4/22/10)--A bipartisan regulatory reform bill could be in the works, said American Banker (April 21). Sen. Richard Shelby (R-Ala.) said the Senate Banking Committee is making progress, and a consensus could be reached. One concern lawmakers have about the bill is including resolution language so no troubled bank can be propped up. The “overriding issue on too big to fail” is that the language will send the message that no bank is going to be bailed out, Shelby said. Lawmakers also are nearing an agreement on regulating derivatives, he added. Sen. Christopher Dodd (D-Conn.), who authored the regulatory reform bill, said he also was confident that a bipartisan deal could be reached ... * WASHINGTON (4/22/10)--Lawmakers are debating whether a pending regulatory reform bill could have prevented Lehman Brother’s fall if the bill had been enacted two years ago (American Banker April 21). House Democrats, regulators and the Obama administration said the reform would have given regulators the power to detect problems earlier and unwind the bank. However, Republicans said regulators already have a lot of power that they failed to use. Rep. Spencer Bachus (R-Ala.) said regulators did not catch Lehman’s accounting manipulation, and that regulatory reform proposals would have only doubled down the failed policies already in place. Federal Reserve Board Chairman Ben Bernanke said the Fed had few options when Lehman collapsed. If the reform bill were enacted, the Fed would have had more ability to force Lehman into precautionary measures, he said. Tim Geithner argued that under the bill, large firms would have had consolidated oversight by the Fed and would have higher capital and liquidity requirements ... * WASHINGTON (4/22/10)--Lawmakers are divided on whether or not a financial crisis responsibility fee that would be charged to big banks should be included in a regulatory reform bill. Sen. Charles Schumer (D-N.Y.) said Congress should not wait to pass legislation that would assess a 15-basis-point fee on firms with more than $50 billion in assets. The proposal is a common sense way to ensure taxpayer money is repaid, he said. However, Senate Banking Committee Chairman Christopher Dodd (D-Conn.) said the tax proposal has merit, but that he wasn’t sure he wanted to add it to the reform bill. It’s unclear how the tax would be levied, and more hearings will likely be held on the topic (American Banker April 21) ... * WASHINGTON (4/22/10)--The Federal Deposit Insurance Corp. (FDIC) announced two bond sales (American Banker April 21). The FDIC said it raised $2 billion by selling failed-bank assets. In one sale, the agency generated $1.3 billion from notes guaranteed by $4.5 billion of assets from Corus Bank in Chicago. In the other sale, FDIC received $652 from selling notes backed by $1.2 billion of assets from Franklin Bank in Houston ...


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