As bank reform legislation failed to pass a key test vote in the Senate, Democrats released a deal late Monday they struck amongst themselves over how to regulate the opaque $450 trillion derivatives market.
There are a number of controversial measures in the derivatives package, none more so that a provision that would have commercial banks divest their entire derivatives divisions if they want to continue to have access to the government safety net.
The deal on derivatives comes after Republicans voted unanimously to oppose a key procedural motion put forward by congressional leaders that would have allowed for a debate on the financial institution bill by the full Senate. Democrats are set to schedule another vote on beginning Senate debate on bank reform as soon as Wednesday.
Full Story: Democrats reach deal on $450 trillion swaps market – MarketWatch