Corporate Governance

Future of Derivatives May Hinge on Outcome of Ark. Primary

By Anthony F. Maul

Arkansas Senator Blanche Lincoln (D) faces a tough primary runoff today, and the Wall Street Journal notes that important legislation may hinge on the outcome.  Lincoln is the author of a controversial provision in the Senate version of the financial overhaul bill that would effectively require banks to spin off their derivatives businesses into separately-capitalized entities.  The provision is strongly opposed by the banking industry, as well as a bipartisan collection of legislators.  The Journal?s Washington Wire Blog speculates that the provision?s prospects may be directly dependant on Lincoln?s political fate, and notes that Democrat leaders from the House and Senate will be discussing the provision at a meeting today.  For what it?s worth, polls taken since the first primary last month show Lincoln trailing challenger Bill Halter within the margin of error.

Full post as published by PomTalk on June 08, 2010 (boomark / email).