Derivatives Reform Weakened By Two Little-Noticed Amendments Read more at: http://www.huffingtonpo

[AllentownJake]

Two little-noticed amendments inserted Wednesday into legislation seeking to strengthen regulation of derivatives will allow private industry to continue to set rules and largely self-regulate, tying the hands of regulators who want more say in how these exotic financial instruments are traded.

Offered by Rep. Judy Biggert, an Illinois Republican, the provisions take away power the Obama administration proposed giving to the Commodity Futures Trading Commission (CFTC), the regulator in charge of policing most types of derivatives. Rather, the power to supervise how derivatives are traded will rest with the clearinghouses and exchanges that house them. Furthermore, when the exchanges and clearinghouses change or offer up new rules, the CFTC will not be able to review them before they are finalized to ensure, for example, that they comply with existing law. Instead, the rules proposed by private industry will immediately go into effect.


Read more at: http://www.huffingtonpost.com/2009/10/15/derivatives-reform-weaken_n_322280.html

[Autumn]

1. Can it be vetoed? n/t

[AllentownJake]

2. It can be ammended again when it leaves committee

Or another bill could include the reforms in another committee and when they are reconciled it could be included

Reminder a Republican introduced the amendment, democrats voted for it.

[Autumn]

3. They do seem to do that a lot

don't they?

[AllentownJake]

4. It's called cover

The members of that committee take donations from the same folks. They have a delicate balancing act of passing the appearance of reform without any actual reform.