Looks like that's what the plan is going to be along with some other adjustments but the plan in conference will be to take out Lincoln's plan on swap trading and replace it with Merkley-Levin (which wasn't allowed a vote in the Senate). Doing so is germane because of the fact the there was already a version of the Volcker Rule in the Legislation.
Replace Lincoln's swap provisions with Merkley Levin
It's always been likely that Lincoln's swap desks amendment would come out. The administration has hated it. Paul Volcker and Sheila Bair hate it. And so have everyone else. It has been kept in primarily because it would be ceded as "giving into to wall street" on the issue. Hence, people have been hesitant to touch it. Enter this compromise where Lincolns' provision would be removed and Merkley-Levin would be added in along with some other additions.
The inclusion of a version of the Merkley-Levin amendment might appease some leftwing critics of the bill, some of whom support a widely disliked proposal by Blanche Lincoln, the Senate agriculture committee chairman, to force banks to spin off their swaps desks.
That proposal is opposed by the Federal Reserve, the Federal Deposit Insurance Corporation and the industry, which fears it would prevent banks from using swaps to hedge risk.
Either the Merkley-Levin proposal or the New York Fed reform could drop out of contention in the last frantic few weeks of the conference designed to meld the two texts. However, both are currently in and likely to stay, according to people familiar with the process.
The Fed has so far escaped the most severe intrusions on its activities, but may have to concede on this final battle.
This way it would be added it into the picture without appearing to "water down" the legislation. There are several other issues to pay attention to in the conference committee. The auto exemption of the Consumer agency (which faces a tough sled given the administration's opposition yet the Senate voted 60-39 for the exception as "nonbinding"), the Franken amendment regarding credit agencies(which Franken has apparently been told will remain) and Durbin's credit card fee amendment bill.
Hence, this ain't done, but a lot will have to be looked upon to see whether this will work or not. As for this compromise? It's valid, and it certainly seems like it's an alternative way of doing the same thing that Lincoln had intended but we'll see whether it gets watered down along the way.