House Commerce Committee Chairman Tom Bliley and Senate Banking Committee Chairman Alfonse M. D'Amato reached a deal Tuesday on financial services reform legislation.

The compromise resolves conflicting provisions in the House and Senate reform bills governing functional regulation of securities products. The House bill would have let the Securities and Exchange Commission decide which new financial products are securities, while the Senate bill would let the Federal Reserve Board make that call after consulting with the SEC.

Rep. Bliley and Sen. D'Amato agreed to amend the Senate bill to let the SEC distinguish between banking and securities products and allow the Fed to challenge those decisions in court.

-Dean Anason

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.