WASHINGTON — A House panel voted Thursday to regulate for the first time privately traded derivatives, the kind of exotic financial instruments that helped bring down Lehman Brothers and nearly toppled American International Group.
The 43-26 vote by the House Financial Services Committee was a first major step for President Barack Obama’s plans to overhaul federal regulations governing the nation’s financial institutions.
The mostly party-line vote showed that Democrats were prepared to band together to override objections by Republicans and the financial lobby and demand increased oversight of Wall Street.
The measure still faces scrutiny by the full House, as well as in the Senate, where business-minded Republicans are likely to wield more influence. The Associated Press
