ECONOMY

Cold Water Thrown on Derivatives Regulation Efforts: In a letter to House Banking Committee Chairman Henry Gonzalez (D-Tex.), Undersecretary of the Treasury Frank Newman said that, except for certain bankruptcy law amendments relating to foreign exchange contracts, legislation regarding derivatives is not needed at this time “in light of the progress the private sector and financial regulators are making and the further progress we anticipate.” A House banking subcommittee had been scheduled to vote Tuesday on a Gonzalez bill to regulate derivatives. However, Gonzalez decided to scrub that vote because of opposition from the Treasury Department and because time is running out in this session of Congress.