Dodd bill includes sweeping new powers for regulators

Under Senator Christopher Dodd's financial reform bill, announced today, regulators would have additional oversight over hedge funds, derivatives and proprietary trading.

Among other powers, the Federal Reserve would get the authority to break up large financial firms and require hedge funds to register with the federal government.

The Commodity Futures Trading Commission would receive regulatory power over OTC derivatives, including approval powers over contracts. Those contracts also would have to be cleared on a central clearinghouse.

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