Following a 13 – 8 vote Wednesday, the Senate Agriculture Committee passed a bill designed to reform regulation of the over-the-counter derivatives market — which began in 1981 and remain to this day largely unregulated — bringing financial regulatory reform one step closer to reality. The bill will be incorporated into the larger financial reform bill that will be considered by the full Senate in the coming weeks.
The U.S. Department of the Treasury today released the following statement from Secretary Tim Geithner on the bill’s passage of the The Wall Street Transparency and Accountability Act of 2010:
“Today, the Senate took another step towards comprehensive financial reform. Under Chairman Lincoln’s strong leadership, the Senate Agriculture Committee voted out a bipartisan bill that will bring derivatives trading out of the dark, provide strong oversight of market participants, and combat fraud, abuse and manipulation. Chairman Dodd’s comprehensive and tough legislation has already passed out of the Senate Banking Committee. We will continue to work with Chairman Dodd, Chairman Lincoln, and Senate leadership to craft strong derivatives provisions that close loopholes, provide necessary transparency, and reduce threats to financial stability as part of a final, comprehensive financial reform bill.”