Big Win For The Fed: Senate Votes To Keep Small Banks Under Fed's Watch

Big Win For The Fed: Senate Votes To Keep Small Banks Under Fed's Watch

May 12 (Bloomberg) -- The U.S. Senate today approved an amendment to the financial-overhaul bill to retain the Federal Reserve's powers to supervise small banks, in a victory for the central bank and industry lobbyists.

Lawmakers voted 90-9 for the amendment offered by Senator Kay Bailey Hutchison. The Senate bill, as written by Banking Committee Chairman Christopher Dodd, would have limited the Fed's jurisdiction to banks with more than $50 billion in assets, including Goldman Sachs Group Inc. and Morgan Stanley.

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