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Roadblocks to Obama's financial reform plan

Business Times - 09 Mar 2010


Roadblocks to Obama's financial reform plan

Wall Street sees plan to create powerful watchdog for consumers as a threat to its profits

By LEON HADAR
WASHINGTON CORRESPONDENT

LEGISLATION for financial reform that gives the federal government a larger role in regulating financial products such as securities and derivatives seems to be making some headway in Congress in recent days.

In the Senate, where it has been stalled for quite a while, reports now suggest that the Senate Banking Committee appears closer than ever to a bipartisan agreement on a bill that could lead to major reform of the US financial sector.

The House of Representatives, where Democrats maintain a clear majority, has already voted in favour of a financial regulation bill. But in order to get Congress to approve legislation on this issue, the more conservative Senate, where Republicans exert more legislative power, has to pass a similar legislation.

One of the most contentious issues in…