WASHINGTON, D.C. — The House Agriculture Committee — led by Rep. Collin Peterson of Minnesota — passed landmark financial legislation Wednesday that would for the first time regulate financial products linked to the financial crisis.
In a statement, Peterson said that the bill would “increase transparency in the marketplace” and would “benefit end users by not submitting them to onerous cash collateral requirements.”
The bill “will hold swap dealers and major swap participants to new standards for capital, margin, business conduct and other requirements to reduce their ability to again place our financial system in such dire straits,” said Peterson, a Democrat.
The bill, which passed the committee by a voice vote, must still be approved by the House and Senate.
Among other things, it would require derivatives to go through clearinghouses to increase transparency and would implement new requirements on financial firms.