In a speech last month to. what he acknowledged was a "deeply skeptical" audience at a securities industry conference, Rep. James A. Leach, R-Iowa, defended a bill he is cosponsoring to establish standards for the derivatives industry.

Rep. Leach said the bill, H.R. 4503, would create an interagency commission to establish accounting, disclosure, and suitability requirements, enhance the regulators' authority to supervise derivatives, expand the accountability of boards of directors and managers, and enhance the Federal Deposit Insurance Corp.'s ability to manage derivatives products after the insolvency of a financial institution.

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