House and Senate lawmakers are set to meet in mid-June to hash out differences between their regulatory reform bills. Democratic leaders are hoping to finalize a bill before the July 4 recess, but have to work out several thorny issues, including preemption language, how to implement the Volcker Rule, and whether to include controversial provisions that would regulate interchange fees and ban the use of trust-preferred securities from Tier 1 capital.

A Guide to ReconciliationKey differences between House and Senate regulatory reform bills

Issue House Senate
FDIC Board Gives OTS seat to the Fed Gives OTS seat to the consumer protection agency
Consumer Protection Creates an independent agency Creates an independent bureau housed at the Fed
Preemption Attempts to restore Barnett standard, adds additional hurdles Explicitly restores Barnett standard, no extra hurdles
State AG Power Could enforce federal law against national banks Could enforce only new consumer agency rules against national banks
Trust-Preferreds Unaddressed Bans use of trust-preferred securities as Tier 1 capital
Derivatives Regulates swaps but allows banks to still sell them Regulates swaps and forces banks to spin off swaps desks
Volcker Rule Would allow regulators to break up big banks Tells regulators to ban proprietary trading, limit investment
Resolution Fund Would create $200 billion fund for large failures Lets the FDIC borrow from Treasury to handle a failure
Thrifts Eliminates OTS, but keeps thrift charter Eliminates OTS and thrift charter
Interchange Unaddressed Gives Fed power over interchange rates on debit cards

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