Wall Street Roundup: Derivatives on trial; local customers look to local banks

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--Bernanke testifying. Ben Bernanke will testify Wednesday at 2 p.m. Washington time about bank regulation in front of the House Financial Services Committee, just a day after the Federal Open Market Committee decided to keep a key lending rate near zero. [An earlier version of this post gave the wrong day of the week.]

--Big banks losing big customers. A number of states and cities have taken steps to move public funds out of big financial institutions and into smaller banks and credit unions, according to the Wall Street Journal. The moves are described as a way to punish the big banks for tightened lending.

--Derivatives on trial. A Milan judge Wednesday ordered four major banks to stand trial for selling derivatives to Italian cities. The move follows weeks of public outrage about the role that derivatives have played in the deterioration of the Greek economy.

--Souring on China. A bill introduced in the Senate Tuesday is only the latest sign of the souring relationship between the American business community and China.

-- Nathaniel Popper