Congress.org - News : Banking overhaul may have to wait

Banking overhaul may have to wait

Senate may not vote on bill until early 2010.

A Democratic overhaul of banking regulations may have to wait until next year.

On Tuesday, Sen. Chris Dodd (D-Conn.) unveiled the Senate version of a sweeping bill to consolidate federal oversight of banks and other financial institutions, CQ's Phil Mattingly reports.

The draft bill, which does not yet have a number, would consolidate banking regulation from four agencies to one. The new Financial Institutions Regulatory Administration would monitor systemic risk, write standard and break up companies that grew too large.

It is far more ambitious than proposals from the House and President Barack Obama, which would merge existing agencies to three.

Dodd's plan would also give greater powers to the Securities and Exchange Commission and impose tighter restrictions on derivatives markets and hedge funds.

Obama had hoped Congress would pass a bill by the end of the year. Though the House may vote on its version (HR 3126 ) by early December, Dodd's bill is more likely to come to the floor early next year.

-- Ryan Teague Beckwith, Congress.org