Financial Regulatory Forum

US Senate panel to hear from Volcker on bank plan

By Reuters Staff
January 26, 2010

WASHINGTON, Jan 26 (Reuters) – Former Federal Reserve Chairman Paul Volcker is tentatively scheduled to testify next week on the latest White House bank regulation proposals to the U.S. Senate Banking Committee, two Democratic aides told Reuters on Tuesday.

The panel is also working on another hearing with Treasury Department officials on the proposals unveiled last week to limit the size of banks, their proprietary trading and their links to hedge funds and private equity, the aides said.

Volcker is a member of the White House economic team and considered the mastermind behind the bank plan.

Senate Banking Committee Chairman Christopher Dodd and other Democratic members of the panel are involved in closed-door negotiations with Republicans over financial regulation reforms.

President Barack Obama, taking a more confrontational stance with Wall Street, complicated Senate talks last week with proposals targeting the nation’s largest financial firms.

Senator Richard Shelby, top Republican on the banking committee, along with other Republicans, on Friday wrote a letter to Dodd requesting hearings on the Obama proposals. (Reporting by Kevin Drawbaugh; Editing by Andrew Hay) ((kevin.drawbaugh@thomsonreuters.com, +1 202 898 8390, +1 202 488 3459 (fax)))

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