WASHINGTON (CNNMoney.com) – The head of a key banking panel is expected Monday to release a draft bill of sweeping regulatory changes aimed at warding off future collapses in the financial system.
While much of the attention has focused on battles over the creation of a new consumer regulator to ensure consumers get a fair shake with mortgages and credit cards, the final draft is expected to address other areas, including some lawmakers generally agree about.
Senate Banking chief Christopher Dodd, D-Conn., said Thursday that the "single most important thing we do in this bill" will be creating a new mechanism to prevent firms from becoming so big that their failure would threaten the entire financial system, spurring another universally hated $700 billion Troubled Asset Relief Program.
Also expected in the bill: New requirements for banks and financial firms to strengthen their capital cushions and new rules pushing some complex financial products to be traded on clearinghouses, instead of in the shadows as is currently done. FULL STORY