Sen. Chris Dodd (D-Conn.) has offered an amendment to the massive financial reform bill currently active in the senate that would require regulators to study the impact of OTC derivatives regulation for two years before they implement it.
The effort is a last-minute pitch by Dodd, who as the Senate Banking Committee chairman is a key architect of the full legislation, to save the bill. Aspects of the legislation that would heavily regulate OTC derivatives are a key sticking point for Republicans and many Democrats. President Obama also has voiced some reservations about the rules.
Despite the amendment's simplicity and middle-of-the-road tact, it has critics on both sides. Those who favor more regulation say the delay waters down the bill's protective qualities. Those who want less regulation argue the Dodd amendment creates unnecessary uncertainty.
Nevertheless, it may be just enough to win enough votes for passage – perhaps as early as this week.