WASHINGTON — Bankers would retain some say over the operations of the 12 regional Federal Reserve Banks but would lose their ability to vote for regional bank presidents under a House-Senate deal Thursday on a broad financial-regulation bill.
The compromise between House and Senate negotiators diluted a Senate plan that would have made the Fed far more independent of the banking industry.
Also, according to The Huffington Post, a measure that would have allowed investors to better access the corporate decision-making process, including the setting of executive salaries, was stripped by the Senate in conference committee votes Wednesday and Thursday.
Five sources with knowledge of the situation told The Huffington Post that the White House pushed for the measure to be stripped at the behest of the Business Roundtable. The online publication said the sources included congressional aides as well as outside advocates who requested anonymity for fear of White House reprisal.
Separately, House members sought to soften a Senate requirement that would have toughened standards on how much money banks should hold in reserve to guard against losses.
Major issues still remained unresolved, including how much capital banks should hold in reserve and how to police markets dealing in complex, largely unregulated securities known as derivatives.
Rep. Barney Frank, D-Mass., the chairman of the negotiating panel, and Senate Banking Committee Chairman Chris Dodd, D-Conn., want to complete the bill so that the House and Senate can vote before July 4.
