U.S. House and Senate lawmakers introduced legislation thatwould allow more swaps trading to be conducted at banks that havefederal insurance by repealing part of the Dodd-Frank Act.

The bipartisan measures call for altering the 2010 law'srequirement that banks with access to deposit insurance and theFederal Reserve's discount window move some derivatives trades toseparate affiliates that have their own capital. Commodity, equityand structured swaps tied to some asset-backed securities would beallowed in banks under the legislation.

“People who object are going to say this allows banks to takehuge risks. Not true,” said Representative Jim Himes, a Democratfrom Connecticut who is among the bill's sponsors. “It's going toallow them to maintain inventory of the swaps that their customersneed to buy from them; just the same way when you go to buy a carfrom a car dealer.”

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