Financial Times reporters Tom Braithwaite, Anna Fifield and Nicole Bullock write: “Two key Democratic senators offered a narrow path for compromise over the weekend after banks pleaded with regulators and clients to help overturn provisions of a financial regulation bill they say will rock markets.

Chris Dodd, Senate banking committee chairman, and Blanche Lincoln, chairman of the agriculture committee, told the Financial Times there was room to negotiate on a proposal that would force banks to spin off their swaps desks.

Moderate Democrats are trying to cut a deal in private that would change the provision on swaps desks, which the industry and regulators warn is unworkable. Other congressional Democrats are pushing for a $90bn bank levy and increased taxes on private equity executives to fill a funding hole created by the regulation bill. Both measures are opposed by the industry but backed by President Obama.”

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