Oct 15, 2009, 16:58 GMT
Washington - A key US legislative committee on Thursday approved new curbs on the multi-trillion dollar financial derivatives market, marking the first steps by the US towards far-reaching regulatory reforms to prevent the next financial crisis.
The Financial Services Committee of the House of Representatives approved the measure 43-26 in a largely party-line vote, nudging it forward for consideration by the entire House. Only one Republican congressman joined in the vote with the majority Democrats.
The bill would for the first time bring the over-the-counter derivatives market, which is widely blamed for contributing to Wall Street's near collapse, under federal regulation. It is one of a series of pieces proposed by President Barack Obama's administration to shore up oversight of Wall Street firms.
After the morning vote, the committee moved on to the creation of of a Consumer Financial Protection Agency, which would serve as a watchdog over the financial products offered by Wall Street firms.
The entire package of regulatory reforms could come to a vote in the House in November. The Senate is expected to take longer.
Obama has called the reforms the most sweeping since the Great Depression of the 1930s, intended to end excessive risk-taking and spotty regulation that helped push Wall Street to the brink of collapse in September 2008.
Many of the measures have been strongly opposed by industry groups and opposition Republicans, who argue the reforms could hamper innovation at financial firms and stifle growth.
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