The tentative agreement reached by two key Democrats Sunday on a plan to crack down on trading in derivatives would potentially force banks to spin off their operations that trade the exotic financial instruments. The plan, worked out by Senate Banking chairman Chris Dodd (D-CT) and Senate Agriculture chairwoman Blanche Lincoln (D-AR) closely follows legislation—originally written by Lincoln—designed to boost federal oversight and transparency of the derivatives market. Some administration officials have argued the proposal drafted by Lincoln could hand control over the derivatives market into just a few companies, such as hedge funds.
Deal may force trading-desk spinoff
Most Popular Articles
Latest Articles
Pennymac posts first-quarter profit of $39M
Loan production income shrank in the first quarter, but the company’s servicing business continues to grow
-
DOJ charges one of America’s top LOs in alleged mortgage fraud scheme
-
Top Producer Review: Features, pricing & alternatives
-
A&D Mortgage names new servicing manager
-
HUD aims to help protect communities from extreme heat
-
Freedom Mortgage founder addresses ’extraordinary’ credit profiles, profitability and products