A key representative insists “Volkner rule” will survive in pending financial reform legislation, while Sen. Blanche Lincoln's primary victory gives new life to her measure that would spin off banks' derivatives desks.
Lincoln's bill was once thought dead on arrival, with opposition from both sides of the aisle. Despite that, it is included in the Senate's bill, which must be reconciled with the House version passed late last year.
Inclusion of the Volkner rule, which would restrict banks speculative trades, may be even less likely. The Senate bill would require bank regulators merely to study the proposal. The House bill includes a similar measure, although it's only voluntary. Nevertheless, Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, has said the measure will be included in the final legislation.
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