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UPDATE 1-Healthcare reform takes priority in US Senate-aide

Tue Jun 9, 2009 11:10pm IST
 
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* Healthcare reform takes priority now in U.S. Senate

* Senate will refocus on financial reforms in autumn

(Recasts, adds spokeswoman's comments)

WASHINGTON, June 9 (Reuters) - Reform of financial services regulation has taken a temporary back seat in the U.S. Senate to much-needed changes to the American healthcare system, a Senate Banking Committee aide told Reuters on Tuesday.

The switch in priority was determined by the Senate's Democratic leadership, the aide said.

The change means a delay in adopting reforms for banks, insurers, securities firms, hedge funds and other financial institutions and products. "Senate leadership has indicted that regulatory modernization may not be considered until the fall," the aide said, speaking on condition of anonymity.

A Senate Banking Committee spokeswoman, Justine Sessions, said Committee Chairman Christopher Dodd is still committed to sending a financial services modernization bill to President Barack Obama by the end of 2009.

"The banking committee will continue its work on regulatory modernization and will be ready to proceed when leadership is ready for the bill's consideration," Sessions said.

Dodd, a Connecticut Democrat, also serves on the Senate Health Committee, which has a lead role in addressing healthcare reforms.  Continued...

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