By Kevin Drawbaugh
WASHINGTON, Dec 11 (Reuters) – The U.S. House of Representatives was expected to approve the biggest changes in financial regulation since the Great Depression on Friday, marking a win for the Obama administration.
With the Senate due to debate reforms well into next year, the House could complete its legislative work by passing a 1,279-page bill that has been hammered out in the months since 2008′s financial crisis.
The bill still faces potential amendments on the House floor, including one that would gut a key provision — the proposed creation of a Consumer Financial Protection Agency (CFPA) — and another to change mortgage bankruptcy law.
The House approved a section of the bill on Thursday that would impose regulation for the first time on the $450 trillion over-the-counter derivatives market, including credit default swaps like those at the root of American International Group Inc’s problems.
The bill “will increase transparency in the marketplace and reduce the systemic risk that over-the-counter derivatives can pose to the economy if left unchecked,” said Democratic House Agriculture Committee Chairman Collin Peterson in a statement.