Senators refuse to water down derivatives reform -- for now

Despite what has appeared lately to be a united front against certain elements of sweeping OTC derivatives reform making its way through both houses of the U.S. Congress, Republican opponents failed in the Senate to kill certain measures of the legislation.

Most controversial is an amendment proposed by Sen. Blanche Lincoln (D-Ark.), which would require banks to spin off their derivatives desks. Legislators from both parties, and even President Obama, have voiced reservations about the measure.

Still, the Democratic-controlled Senate rejected another amendment that would have let banks keep that business. That amendment was proposed by Sen. Saxby Chambliss (R-Ga.).

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