FDIC's Bair: Byrd's Death Adds "New Dynamic" to Financial Reform (JPM, GS, MS)

Shelia Bair, Chairman of the FDIC, said Senator Robert Byrd's (D-WV) death Monday morning could affect passage of the financial reform bill.

"It does create a new dynamic," said the Federal Deposit Insurance Corporation's Bair. "It was razor thin to begin with, so it does introduce a new unknown into the process." Final Senate/ House negotiations on financial reform are being considered.

Bank stocks, including J.P. Morgan (NYSE: JPM), Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS) declined over 1% in early trading this morning. Future bank earnings could be considerably affected by various provisions in the finalized financial reform bill.

The Obama administration is relying heavily on the passage of new financial regulation. Byrd's death could play a crucial role in the 60 vote threshold necessary for passage.

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