WASHINGTON -- A House Committee approved six new bills to deregulate Wall Street derivatives on Wednesday, advancing legislation that would expand taxpayer support for derivatives and create broad new trading loopholes allowing banks to shirk risk management standards created by the 2010 Dodd-Frank bill.
The most controversial bill to advance Wednesday is explicitly designed to expand taxpayer backing for derivatives. It was the only legislation that lawmakers were required to cast individual votes for or against; the others were all approved by unanimous voice votes. The bill to increase taxpayer support for bank derivatives dealing was approved by a vote of 31 to 14.
Top Economists: Iceland Did It Right … And Everyone Else Is Doing It Wrong
Originally posted by poet1b
Why would anyone expect different from the Whig Ed repub con trolled House.
The headline say bi-partisan, but the article clearly quotes democratic opposition, and democratic rep speaking out against the ignorance of these policies.
What this effort makes me wonder is how long before the long predicted derivatives market collapses.
The top Democrat on the Agricultural Committee, Rep. Collin Peterson (D-Minn.), gave a speech warning that the legislation could repeat the deregulation debacles of the 1990s.
"Two of the worst votes I ever made in this place was the Commodity [Futures] Modernization Act of 2000 that exempted all of these swaps from any regulation or any margins," Peterson said. "I didn't know any better. The other vote I made that was really bad is eliminating Glass-Steagall. We should have never done that and I bought into that. You know, if we had Glass-Steagall back, this wouldn't be an issue here ... You're putting taxpayers on the hook.
Scott spoke out in support of several of the deregulation bills. He is the only Democrat who serves on both the Financial Services Committee and the Agriculture Committee, and has raised over $1.7 million from the banking industry over the course of his congressional career -- more than double his total from any other sector, according to Center for Responsive Politics.
Originally posted by digital01anarchy
they should make add a paper clip note that anyone backing this is also responsible so if this turns south their bank accounts are frozen and they are completely broke if it falls back on the tax payers and i bet this wouldn't get a single vote
Dodd-Frank forced banks to move some of their derivatives sales operations out of the unit that receives government insurance, in an effort designed to prevent taxpayers from having to repay depositors if risky derivatives forced a bank to fail. On Wednesday, the House committee approved a bill that would eliminate that safeguard and allow banks to deal derivatives from their taxpayer-backed unit. The repeal was sponsored by Reps. Jim Himes (D-Conn.), Sean Patrick Maloney (D-N.Y.), Randy Hultgren (R-Ill.) and Richard Hudson (R-N.C.). Banks like the provision because it allows them to earn higher profits from their derivatives sales, since credit rating agencies issue higher ratings to derivatives sold with taxpayer support.
Originally posted by poet1b
GW or Romney would be chomping at the bit to sign such a bill.
Posted: 03/07/2013 10:35 am EST | Updated: 03/07/2013 4:11 pm EST
Rep. Jim Himes (D-Conn.), a former Wall Street executive, is joining Rep. Randy Hultgren (R-Ill.) to introduce legislation that would deregulate derivatives, undercutting one of the most meaningful elements of the 2010 Dodd-Frank Wall Street Reform Act.
Derivatives -- which Warren Buffett has referred to as “financial weapons of mass destruction” -- are viewed as a key trigger of the 2008 economic crisis.
The bill would "allow banks to keep commodity and equity derivatives in federally insured units," Politico reported on Wednesday, meaning that banks would no longer be forced to spin off their trading desks. It would weaken Dodd-Frank's "push out" provision, otherwise known as the Prohibition Against Federal Government Bailouts of Swaps Entities, which bars federal assistance from being provided to any swaps entity.
Himes, who was recently named the national finance chairman of the Democratic Congressional Campaign Committee, is a former executive at Goldman Sachs, where he was a vice president
Originally posted by ibiubu
My Sioux friend works at a Casino in South Dakota. He says that Wall Street is the biggest casino in the US with the worst customer service.edit on 20-3-2013 by ibiubu because: (no reason given)