On Friday, March 19, the two members of the Senate Banking Committee charged with negotiating the over-thecounter derivatives reform portion of Committee Chairman Christopher Dodd's (D-CT) draft financial regulatory reform legislation entitled the Restoring American Financial Stability Act of 2010 issued statements announcing that their negotiations were at an impasse.
Senator Jack Reed (D-RI) stated "Over the course of the last twelve weeks, Senator Gregg and I had constructive discussions. But ultimately, we were not able to reach a comprehensive consensus that would fill dangerous gaps while allowing companies to safely use derivatives to hedge their risks." Senator Judd Gregg (R-NH) stated that "Our goal was to reduce the systemic risk created in this market while maintaining America’s preeminent position as the best place to invest capital, encourage markets, and use these instruments. We made, in my opinion, great progress toward these goals but Chairman Dodd’s decision to move the mark-up forward leaves the effort incomplete."
The Committee is still scheduled to begin its mark-up of Chairman Dodd's draft bill beginning at 5:00 p.m. this evening. It has been widely reported that the Committee received 359 amendments by last week's Friday deadline.