Specifically, the banks want to reduce the impact of new rules, also part of Dodd-Frank, that aim to improve pricing transparency in the derivatives markets.
Trades done through the banks’ nonguaranteed offshore affiliates are more likely to be beyond the reach of the American transparency overhaul.
All I want to know is are we going cliff jumping or dumpster diving this time around.
Fucking John of Orange couldn’t pass a bill on the first go-around if his life depended on it. Nor am I gonna hold my breath waiting for them to do the responsible thing in the House. I hope this bill as it stands, goes down to defeat. Its horrible give-aways stink to high heaven. There are far more then two add-ons that are shameful about this bill…and the fact that the Prez. would sign it anyway is a bad sign of things to come imo.
Reminding us all once again why there needs to be a firewall between FDIC deposit-taking banks and invement banking. If non-FDIC banks want to play in derivatives and the end up burning to the ground, no skin off our backs. But deposit taking FDIC and commercial banks handling business lines of credit, regulate and enforce to the hilt.
That’s because there was no firewall between the invement side of the banks and the deposit taking side. That is why they needed to be bailed out. When suddenly business lines of credit started to be frozen because the banks suddenly had no idea what their assets were worth or how deep their exposure really was and the CDSs hedges were suddenly worth toilet paper because the issuers were collapsing.
While I certainly understand Wall Street wanting to gut whatever watered down Dodd-Frank regs still exist, at some point, the teabaggers will be a formidable opponent for them to wrestle with. It’s not really the teabagging mouthbreathers that do Wall Street’s bidding on command; that job goes to GOP leadership (or whatever passes for it nowadays). The 'baggers go off on their own when they want, when they believe they are totally justified in burning the country down. The answer to their hate and ignorance.
If the business community thought there was “uncertainty” before, the next 2 two years should have them sh*tting green nickels.
Of course GOP members would kick the can into next year, since they would control both houses of Congress. Of course the President would go on record as saying he will support it because if the veto falls to him, the shut-down falls to him. Partisan gamesmanship and the public be damned again! George Washington was right to curse the day Jefferson and his pro-slavery compatriots introduced party politics into the United States Congress.
I believe Dodd-Frank calls for these swaps to be traded in regulated markets, but not in FDIC-insured entities, but in separate divisions to avoid risk to depositors and the FDIC.
The idea is that banks would take greater risks if they were investing (gambling with) other people’s money, confident that the FDIC would present a backstop for their losses.
Privatized profit, socialized risk – Viva Las Vegas!
I’ve seen that number before, but I think it might be misleading. That represents the total sum-and-difference of bets in that market. I don’t think that’s the actual aggregate value. If I understood it (which I’m not sure I do), some derivative trades cancel each other out.
They posed a big risk to the financial sector, and therefore to the global economy.
Also, if Tim Geithner was to be believed, there were questions as to what authority the federal government actually possessed in winding down failing institutions in an orderly fashion.
I’d like to believe you, but I don’t recall the Tea Party throwing even tepid support behind bank reform.
They were all blustery with outrage over the bank bailout – after Bush and Paulson were gone and they now had a Democratic administration to flog – but they didn’t show any real support behind Dodd-Frank.
In fact, they kept demogoguing that it represented another bailout.
Also, for those hating on the (mostly gone and unlamented) Blue Dogs Dems, this provision of Dodd-Frank regulating derivatives was sponsored by Blanche Lincoln, and it actually got stronger as it made its way through committee into final passage.
