Senator would limit banks' role in OTC clearing

Bank ownership of OTC clearinghouses would be strictly limited, under a proposed amendment to the Senate version of the financial reform bill.

The amendment, proposed by Ohio Democrat Sherrod Brown, could be a financial blow to banks' earning potential. OTC clearing is expected to be a lucrative upshot of the new finance laws.

Brown argued today that the rules are necessary to maintain the integrity of the newly cleared OTC markets, which will see significant bank participation. His amendment also would limit bank representation on clearinghouse boards.

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