The reforms are meant to prevent a repeat of the 2007-2009 financial crisis that tipped the economy into a deep recession and triggered massive taxpayer bailouts of big banks.

Bank lobbyists, often working closely with Republicans, have tried to block or water down the bill but with limited success amid deep voter anger with Wall Street.

Negotiators still must resolve lingering disputes over derivatives regulation and other issues that have billion-dollar ramifications for the financial industry.

Democrats were seeking to finalize proposals to force banks to spin off their lucrative swaps dealing desks and to curb trading for their own accounts -- risky practices that have been blamed for contributing to the crisis.

VOLCKER RULE ON WEDNESDAY

A turning point could come on Wednesday.

Dodd said he would try to stiffen the so-called Volcker rule, which would limit banks' proprietary trading by giving regulators less leeway to interpret it.

But that proposal, named for White House economic adviser Paul Volcker, could include a carve-out that would let banks make small investment in private equity and hedge funds. Banks have pushed hard for the exemption, arguing that it is key to their asset-management business by allowing them to invest in funds alongside clients.

... In another possible blow to banks, House Democrats insisted that low-risk home loans be included in a requirement that mortgage lenders carry on their books at least 5 percent of the risk from loans they make and then sell off as securities.

COMMENT:

In comparison to Bank regulation the yuan revaluation remains a side show when it comes to the impact on Wall Street . With their back against the wall we can expect bankers and other similar predator fish to go down ``mean`` street all the way to Washington and back to water down this bill to a trickle .

Main street may be flooded with people but i believe they´re no match for the mean streeter .

This must be a fat year for banker´s politician friends .