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تم تعديل 2 يونيو 2010 بواسطة vbsupport

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Banks are likely to lose a key lobbying battle in the US over whether they will be forced to spin off their lucrative swaps desks, according to people familiar with financial reform negotiations in Congress.

Defeat, which would be a further blow to Wall Street, has been made more likely by Paul Volcker, the influential former Federal Reserve chairman, softening his opposition to the provision.

Blanche Lincoln, the Senate agriculture chairman, is the lead proponent of the plan, which would force banks to create a separately capitalised subsidiary to house the derivatives dealing operations -- a significant source of profits for big banks, such as JPMorgan Chase.

The expensive restructuring could drive activity out of the largest Wall Street banks and into more lightly regulated rivals and overseas competitors, according to the Federal Reserve and Federal Deposit Insurance Corporation, which oppose the plan.

Mr Volcker -- who has become a talisman of the financial reform effort ever since the "Volcker Rule" to force banks to end proprietary trading was embraced by Barack Obama, US president, in January -- previously opposed the Lincoln provision.

Although he declined to say whether he now supported it, Mr Volcker told the Financial Times that his earlier criticism was based on the belief that a stricter spin-off was in the works and it was now a "relevant question" whether damage would be done if swaps desks could be kept within a bank holding company.

"I tend to think of the bank holding company as the relevant organisation," he said.

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Banks are likely to lose a key lobbying battle in the US over whether they will be forced to spin off their lucrative swaps desks, according to people familiar with financial reform negotiations in Congress.

Defeat, which would be a further blow to Wall Street, has been made more likely by Paul Volcker, the influential former Federal Reserve chairman, softening his opposition to the provision.

Blanche Lincoln, the Senate agriculture chairman, is the lead proponent of the plan, which would force banks to create a separately capitalised subsidiary to house the derivatives dealing operations -- a significant source of profits for big banks, such as JPMorgan Chase.

The expensive restructuring could drive activity out of the largest Wall Street banks and into more lightly regulated rivals and overseas competitors, according to the Federal Reserve and Federal Deposit Insurance Corporation, which oppose the plan.

Mr Volcker -- who has become a talisman of the financial reform effort ever since the "Volcker Rule" to force banks to end proprietary trading was embraced by Barack Obama, US president, in January -- previously opposed the Lincoln provision.

Although he declined to say whether he now supported it, Mr Volcker told the Financial Times that his earlier criticism was based on the belief that a stricter spin-off was in the works and it was now a "relevant question" whether damage would be done if swaps desks could be kept within a bank holding company.

"I tend to think of the bank holding company as the relevant organisation," he said.

تم تعديل 15 يونيو 2010 بواسطة vbsupport

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