“The Major Derivative Provisions of the Financial Markets Reform Bill Passed by the Senate”
On May 20, 2010, the U.S. Senate passed the Restoring American Financial Stability Act of 2010 (the “Senate Bill” or the “Bill”). The approximately 1,600-page Bill passed the Senate by a vote of 59 to 39, with votes primarily split by party affiliation. The Bill seeks to address the financial crisis that gripped much of the world in 2007 and 2008, by reforming key areas of the financial services industry. Included in such reform are major amendments to laws governing derivatives.
A Conference Committee has been convened to reconcile the differences between the Senate Bill and the bill passed by the U.S. House of Representatives on December 11, 2009 – the Wall Street Reform and Consumer Protection Act of 2009 (the “House Bill”). The House Bill was the subject of a prior Stroock Special Bulletin dated January 11, 2010. It is expected that the final legislation will be ready for signature by President Obama in early July 2010.
This Stroock Special Bulletin summarizes the major derivative provisions of the Senate Bill.