A U.S. lawmaker charged with a key role in hammering out a final financial regulation bill said on Tuesday that there is no need to force banks out of the lucrative over-the-counter derivatives business — a potentially big win for Wall Street firms. Barney Frank, the Democratic congressman named to chair the House-Senate panel that will craft the final bill, said he disagreed with language in the Senate’s bill that could force banks to spin off their derivatives trading desks, Reuters reported. Banks should be allowed to use derivatives, Frank, chairman of the House of Representatives Financial Services Committee, said at an event in Washington. New rules for the $615 trillion over-the-counter derivatives business are one of the most contentious parts of the broad regulation bill. One veteran banking analyst has said the legislation, including new derivatives rules, could lower the banking industry’s earning capacity by about 25 percent. The Senate bill aims to curb banks’ risky activities by forcing banks to choose between their derivatives business and access to the Federal Reserve’s emergency funds and other federal protections. Those provisions were proposed by Arkansas Sen. Blanche Lincoln, who said it would ensure that banks get back to the business of banking. Yesterday, the Senate named seven Democrats and five Republicans to serve on the House-Senate conference committee, among them Iowa Sen. Tom Harkin. “Over the last year, Wall Street has repeatedly tried to kill this reform with hundreds of lobbyists and millions of dollars in ads,” Harkin said in a press release.”From my seat at the table, I look forward to ensuring that effort will have been in vain. I plan to do everything in my power to preserve the bill’s integrity, strengthen its consumer protections, and stop the reckless financial wheeling and dealing that destabilized our economy and threw millions of Americans out of work.” Other Democrats chosen were Lincoln, Christopher Dodd of Connecticut, Tim Johnson of South Dakota, Jack Reed of Rhode Island, Charles Schumer of New York and Patrick Leahy of Vermont. The five Republican senators selected were Richard Shelby of Alabama, Saxby Chambliss of Georgia, Bob Corker of Tennessee, Mike Crapo of Idaho and Judd Gregg of New Hampshire. The House is expected to announce its selections for the committee within the next two weeks. Frank said he expected the two chambers to reconcile their differences and have a bill ready for President Barack Obama to sign by early July.