This is based on an interview I did with TradeWeb’s DerivAlert.org site a few weeks back. An excerpt:
Q: Will the OTC derivatives provisions in the Senate’s bill be a major sticking point in the floor debate?
A: It will. For some time it seemed that things like “too big to fail” and consumer protection would end up being the primary focus and I was actually concerned for a little bit that some of the less-than-ideal derivatives provisions would make it through because senators would be focused elsewhere. In the last couple of weeks we’ve seen that derivatives are, in fact, front-and-center. That push really came after Sen. Blanche Lincoln released her bill from the Agriculture Committee. The most controversial provision in the bill is the proposal to have banks spin off their swaps desks. From conversations I’ve had, it seems highly unlikely that this will actually get passed.
Read the full interview at DerivAlert.org