Sen Dodd says US must act first on financial rules

* Dodd says U.S. must keep edge by passing reform first

* Says has not yet reached bipartisan deal, still hopeful

* Signals support for Gillibrand’s ideas on derivatives

WASHINGTON, April 21 (BestGrowthStock) – Senate Banking Committee
Chairman Christopher Dodd said on Wednesday that the United
States must act first on financial reform to maintain a global
competitive edge, while also signaling concerns about a
proposal that would force big banks to spin off swaps desks.

Dodd, the Democrat leading the financial reform effort in
the Senate, said he has not yet reached a bipartisan deal, but
said a lot of Republicans are willing to support a bill.

He said there is an urgency for the United States to pass
financial reform first.

“If we don’t lead on this, the Europeans or others will,”
Dodd said in an interview on Bloomberg Television. “We need to
act first, in my view, in this area if we’re going to lead in
financial services.”

New regulations for banks and markets are expected to
dominate discussions at this week’s meetings of G20 finance
leaders and the International Monetary Fund in Washington.

Charles Dallara, head of the Washington-based Institute of
International Finance, which represents banks, said earlier
this week that there are signs the spirit of unity in
addressing global challenges may be waning. [ID:nN1698563]

The full Senate is expected to begin debating financial
reform next week.

Dodd also said he has been in active talks with members of
the Senate Agriculture Committee, which is meeting today on its
derivatives reform proposal.

Dodd said he hopes the committee will listen to the ideas
from New York Democratic Senator Kirsten Gillibrand, who has
filed amendments to the bill that would drop the proposal for
banks to spin off swaps desks — a measure that could have a
big impact for big firms like Goldman Sachs (GS.N: ).

“People like Kirsten Gillibrand have some very strong and
good ideas my view on how this ought to work,” Dodd said.
Investment Basics

(Reporting by Karey Wutkowski, Editing by Chizu Nomiyama)

Sen Dodd says US must act first on financial rules