April, 30, 2010

Senate lawmakers in both parties are planning populist attacks on Wall Street by proposing a flurry of amendments to pending financial-markets legislation in coming weeks.If adopted, the amendments would change the banking industry far more than the current version of the bill that aims to overhaul financial-sector regulations. The provisions would make companies smaller, simpler and less likely to take risks.Such amendments are normally batted back easily, but the anti-bank fervor in Washington has made it difficult for the financial industry to find supporters.

And because Republicans and Democrats couldn't reach a deal on the bill's parameters before it was debated, there probably won't be a unified block of lawmakers to fend off requests for changes.As debate started in the Senate Thursday on the broad overhaul, some administration officials and lawmakers said they worried the amendments could backfire, steering lending and trading in complex financial instruments to hedge funds and other finance companies that are less regulated than banks.