Financial Reform

Derivatives Could Disappear

All eyes in Washington were on financial reform Wednesday as President Obama held a meeting with Congressional leaders at the White House. Republicans blasted the president, saying his financial reform bill might allow another bank bailout. But the major battleground in the reform fight seems to be on derivatives, the financial instruments that were key in the economy's collapse. Arkansas Democrat Sen. Blanche Lincoln is frightening Wall Street by advocating that the sale of nearly all derivatives be stopped. Those in finance say the tools are essential ones for trade in our economy. Said Lincoln, "The dark days of deals are over." Republicans say the plan would make the U.S. uncompetitive in the global markets. "You might as well say, 'Take every derivative to Singapore,'" Sen. Judd Gregg of New Hampshire said.