Released: November 11, 2009

Senate plan would expand regulation of risky lending

Source: Stepehen Labaton, NY Times (Free Registration)

The chairman of the Senate banking committee proposed a financial overhaul on Tuesday that included consolidating bank regulators, creating a consumer financial protection agency and imposing new restraints on exotic financial instruments and credit rating agencies.

The 1,136-page plan by Senator Christopher J. Dodd, a Connecticut Democrat, differs in major respects from both the White House and House plans. Even before it was made public, it had encountered sharp resistance from Republicans and powerful business interests in Washington. With fewer than 20 days left in the legislative session, it is all but certain that Congress will not deliver on President Obama’s request to repair the financial regulatory system by the end of the year.

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