This is an another Senator who may now count

It's Thursday will begin the Conference to unify the texts voted by the House of representatives and the Senate on financial regulatory reform. 20 Parliamentarians planned to meet seven times, until June 24, to harmonize their reforms, knowing that the basic text will be that of the Senate.

Already, the White House has asked that they emit a report by consensus on 24 June, before the President Obama fled to Toronto to attend the g-20 heads of State. The President wants to show a unified position of the United States whereas the financial regulation will be the main topic of this meeting. This weekend, Finance Ministers of the g-20 meeting in Busan, South Korea, to are given until November as the deadline to finalize the new rules of solvency and liquidity of the banks that will have to be applied late 2012.

Date "target".

According to UBS, this could represent up to 375 billion of additional capital needs. But the g-20 members struggling to find a common position. The Europeans want to limit the size of the reserves to continue to lend while Americans, whose economy is further funded by markets, prefer to have more equity on their balance sheet to better withstand the crisis, explained the Reuters news agency.

In this context, the bickering on financial reform benefit not the position of the United States in Toronto. Hence the application of the White House to press the pace, with the hope that the law was passed late June or early July to sign before the celebration of independence, July 4.

Despite pressures from the Executive, the parliamentarians argued that the date of June 24 could be that a target in any case a deadline. Republicans are particularly opposed to be pressing on a text which is more than 1,600 pages and which will mark the second legislative victory of Barack Obama, after the health insurance reform. So will need to reconcile the positions on several conflicting issues, and especially derivatives and brokerage on own funds.

At a press conference, on 25 may, the Chairman of the Committee on financial services to the Chamber of Deputies, Barney Frank, has suggested that the proposal of Blanche Lincoln of forth derivatives brokerage activity is abandoned in favour of a hardening of the Volcker rule. It lays down the principle that commercial banks do more brokerages on own funds and cede their interests in hedge funds and funds of "private equity", but leave the regulators care to determine applications.

According to Barney Frank, the Volcker rule eliminates the need to create independent trading structures for banks with regard to derivatives... a point of law which has been criticized by regulators (Federal Reserve and FDIC) as by banks. But that could allow perhaps the Democratic Senator from Arkansas, Blanche Lincoln, win today (Tuesday) its primary to be candidate for re-election in November, with its harsh positions on Wall Street.

This is an another Senator who may now count. Susan Collins, a Maine Republican, gave the voice of his party to move the text to the Senate. In Exchange, the law may eventually incorporate more stringent requirements on the levels of capital from the banks that were previously left to the discretion of regulators.