WASHINGTON, June 25 (Reuters) - Banks would be allowed to trade in-house many types of over-the-counter derivatives under a new proposal designed to break an impasse in the U.S. Congress over financial regulation reform, Democratic Rep. Collin Peterson said on Friday.
Banks could trade foreign exchange and interest rate swaps in house, as well as gold and silver swaps, and derivatives designed to hedge their own risk, said Peterson, citing a compromise worked on by members of a House and Senate financial reform panel as well as Obama administration officials.
But banks would need to spin-off desks to affiliates to handle agricultural, energy and metals swaps, equity swaps, and uncleared credit default swaps, Peterson said.
