WASHINGTON (Reuters) - An amendment that would tighten proposed limits on banks’ trading activities has been modified to improve its chances of coming to a vote on the U.S. Senate floor, a senior Senate aide said on Wednesday.
The amendment from Democrats Jeff Merkley and Carl Levin would toughen a part of a sweeping Wall Street reform bill that endorses the “Volcker rule” proposed in January by President Barack Obama and White House economic adviser Paul Volcker.
The rule would curb proprietary trading by banks for their own accounts unrelated to customers’ needs, get banks out of the hedge fund business, and limit their future growth.
The language in the Democratic bill would leave it to regulators to write the Volcker rule’s details and expose it to being watered down later. The Merkley-Levin amendment would reduce regulators’ latitude to change the rule.
The aide said the amendment has been altered slightly to ensure it will still be in play on the Senate floor even after an impending procedural vote to limit debate and amendments.
Reporting by Kevin Drawbaugh, Editing by Chizu Nomiyama
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