UPDATE 1-Liquidation fund not central to Wall St reform -Hoyer

(Adds background, details)

WASHINGTON, April 20 (BestGrowthStock) – A proposed fund designed to
help pay for the dismantling of troubled financial giants is
not central to an overhaul of financial regulations, House
Democratic Leader Steny Hoyer said on Tuesday.

“I don’t think the fund is central to what we’re doing.
What is central to what we’re doing is put the referee back on
the field,” Hoyer told reporters.

Hoyer’s comments indicated that Democrats might be willing
to abandon the idea of a standing fund as they tighten the
regulatory screws on banks following the 2008-2009 meltdown.

Under both the House and Senate bills, financial firms with
over $50 billion in assets would pay into a fund to wind down
troubled financial firms, steering a middle course between
bailout and bankruptcy.

Republicans have said that approach amounts to a standing
bailout fund that will be used to prop up insolvent Wall Street
firms.

Large firms together would pay up to $150 billion into the
fund, under the House bill passed in December. The Senate
version, which could come to floor this week, envisions a $50
billion fund.

Stock Market Research

(Reporting by Donna Smith, writing by Andy Sullivan; editing
by Sandra Maler)

UPDATE 1-Liquidation fund not central to Wall St reform -Hoyer