The House Financial Services Committee approved amendments Friday to reduce the power a bill would give the Federal Reserve Board to monitor systemic risk and to remove conservatorship as an option when unwinding a systemically risky company.
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An amendment offered by committee Chairman Barney Frank and adopted on a voice vote would delete a provision to let the Fed override prudential regulators on systemic-risk matters. The other regulators had adamantly opposed the original provision.
The panel also approved an amendment from Rep. Dennis Moore that would remove the option of putting a systemically risky firm into conservatorship. "The firm would have to be dissolved," said the Kansas Democrat.
