Senate Allows Fed To Keep Oversight Of Small Banks

Law360, New York (May 12, 2010, 4:44 PM EDT) -- The U.S. Senate handed the Federal Reserve a win Wednesday, voting 90-9 to strip a measure from financial regulatory reform legislation that would have transferred oversight of thousands of state-chartered community banks from the Fed to the Federal Deposit Insurance Corp.

The amendment, offered by Sens. Amy Klobuchar, D-Minn., and Kay Bailey Hutchinson, R-Texas, was one of several that saw action Wednesday as Sen. Chris Dodd, D-Conn., pressed lawmakers to speed up their consideration of S. 3217, the Restoring American Financial Stability Act.

The Klobuchar-Hutchinson measure...
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