Dodd Weighs Changes to Overhaul of Financial Rules

By Phil Mattingly and Alison Vekshin

March 20 (Bloomberg) — Senate Banking Committee Chairman Christopher Dodd will begin weighing amendments to his proposed overhaul of financial rules next week after accepting a change sought by Federal Deposit Insurance Corp. Chairman Sheila Bair.

Dodd plans to begin committee meetings March 22 that will consider some of the 399 amendments senators have offered to the plan he unveiled this week, his spokeswoman Kirstin Brost said yesterday. The Connecticut Democrat has already agreed to revise language that Bair said could lead to “backdoor bailouts” of firms through a Federal Reserve lending facility, Brost said.

“There are provisions that would suggest that the Federal Reserve Board could support an open institution if it’s involved in payment processing or clearing facilities,” Bair said in a speech yesterday at the Independent Community Bankers of America convention in Orlando, Florida.

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