The afternoon deal: Regulation

February 5, 2010

GOLDMAN/Impending financial regulations are rumbling though the banking quarters like thunder through a skyscraper’s walls. It’s unsettling to some.

Today Christopher Dodd, the Democratic chairman of the Senate Banking Committee, said he has reached an impasse with his Republican counterpart and will begin drafting new legislation to be considered later this month.

Congress is trying to construct an overhaul of financial regulations in the wake of the market meltdown that led to multi-billion dollar taxpayer bailouts of individual financial firms and the collapse of others, including Lehman Brothers.

Proposals include creating a consumer agency to police financial products, forming a systemic risk regulator and drafting stricter capital and liquidity requirements for financial firms.

Some background from the Web:

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