Sen. Blanche Lincoln's Derivatives-Spinoff Plan Gains Support in Congress
washingtonpost.com — An effort to force some of the nation's biggest banks to spin off their lucrative derivatives-dealing operations appears to be gaining traction, as members of a House-Senate conference begin finalizing details of far-reaching new financial regulations.
The measure, championed by Sen. Blanche Lincoln (D-Ark.), was included in the financial overhaul bill recently passed by the Senate. It had been opposed by Obama administration officials, some lawmakers in both parties, multiple banking regulators and Wall Street. Lincoln is seeking to restrict federal aid to banks that operate as major derivatives dealers.