W.House says derivatives key part of reform effort

WASHINGTON, April 26 (Reuters) - The White House said on Monday that a Senate financial regulatory reform bill, which includes proposals on derivatives, would help create a more stable U.S. financial system.

"The administration also commends the Senate Agriculture Committee for additional leadership on provisions related to derivatives," the White House said in a statement.

It was not immediately clear whether that meant the White House was backing hard-hitting proposals by Democratic Senate Agriculture Committee Chairman Blanche Lincoln for the largely unregulated $450-trillion over-the-counter derivatives market.

Lincoln's proposals would require banks to spin off their swap-trading units.