By Associated Press Writer Jim Kuhnhenn & Tove Tupper
 
June 29, 2010
 
MEDFORD, Ore. - Top Democratic House and Senate negotiators who worked out a deal on a sweeping overhaul of financial regulations regrouped Tuesday to eliminate a $19 billion fee on banks that had threatened to derail the legislation.
 
 
Eager to salvage one of President Barack Obama's legislative priorities, lawmakers replaced the bank fee with money generated by ending the $700 billion bank bailout and by increasing bank premiums on deposit insurance.
 
The bill's fate was thrown into doubt this week following the death of Sen. Robert Byrd, D-W. Va. and after Republican Sen. Scott Brown of Massachusetts vowed to abandon his support for the bill if it retained the assessment on large banks and hedge funds. The money would have been used to pay for the costs of the legislation.
 
Uncertainty surrounding the bill raised doubts about Congress' ability to complete the legislation by July 4, a target for both the White House and Democratic leaders. The House was still expected to vote on the bill Wednesday. But Senate Banking Committee Chairman Chris Dodd said he didn't expect a vote in the Senate until after a week-long July 4th break.
 
The Financial Reform Act would rewrite financial regulations by putting new limits on bank activities, creating an independent consumer protection bureau and adding new rules for largely unregulated financial instruments.
 
Southern Oregon financial experts say the bill will help the individual consumer by giving them more transparency. Armstrong Wealth Management says the bill will require banks to be more up front with the fees they charge. For example, on credit card statements, banks will be required to show consumers how long it will take to pay off their balance with minimum payments.
 
"You can't legislate integrity, but that's really what you need in life. So what is going on in Congress is they're trying to put in certain oversights to make sure people are doing what they are supposed to," AWM Financial Adviser Doug Armstrong said.
 
Umpqua Bank says the bill will cap interchange fees businesses receive when people pay with a debit card. Now that fee will fall back on the banks. Umpqua Bank Executive Vice President Neal Brown says the fee will most likely end up on the consumer's shoulders.