The House Financial Services Committee began discussions Wednesday on how to strengthen financial services oversight, beginning with moving derivative trading to regulated markets, the Associated Press reports. Earlier, the committee had considered an outright ban, but financial services companies maintained that derivatives are a key hedging strategy.

Committee Chairman Barney Frank (D-Mass.) warned that regulators would step in if they see a pattern of out-and-out investments or swaps in derivatives.

The committee is still also considering establishing a Consumer Financial Protection Agency or, instead, giving states additional powers to oversee federally chartered banks.

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