Frank set to move on derivatives

[deminks]

http://thehill.com/business--lobby/frank-set-to-move-on-derivatives-2009-04-07.html

Lawmakers are just beginning to consider details of a new systemic regulator to oversee the entire financial system, but the new authority will likely reach into the yet unregulated world of derivatives.

The Obama administration and leading lawmakers in Congress, including Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, back a proposal to set up a systemic risk regulator to prevent large financial institutions from toppling the broader system. They also support greater restrictions on derivatives now mostly traded simply between parties rather than on a public market.

Frank, who plans hearings in May and legislation by summertime, is looking at how the new regulator can exercise power over the derivatives market, said Steve Adamske, his spokesman. Lawmakers have targeted derivatives for exacerbating the financial crisis and requiring hundreds of billions in taxpayer dollars to bail out insurance firm AIG, which made heavy bets on one type of derivative tied to mortgages.

(snip)

Meanwhile, seven banks have formed a new coalition to press for regulations that do not overly burden companies and industrial firms that use credit derivatives to mitigate risk. The Coalition for Business Finance Reform includes JPMorgan, Morgan Stanley, Credit Suisse, Deutsche Bank, Citigroup, Barclays and Goldman Sachs and is working with the Securities Industry and Financial Markets Association, an industry trade association.

(end snip)

Another glimmer of hope, a glimmer. Don't think the Banksters and their Chamber of Commerce will stand for any regulation, though.

[Tandalayo_Scheisskopf]

1. I would have to say...

That by dint of their actions, the "Masters of The Universe" have proven themselves not so masterful, unable to be responsible with other people's money, and in desperate need of a good regulatory peepee spanking.

So, to put it delicately, fuck them and their counter group. And the horse they rode in on, for good measure.

[Myrina]

2. Indeed. I am still really pissed, and hoping I'm wrong ...

... from the articles I read over the weekend about Geithner and Obama wanting to put provisions in place that allow CEO's to end-run the compensation caps that most of us think are being put in place re: TARP.

Someone please tell me I read it wrong? :hide:

[geckosfeet]

3. Just another office to lobby. But hopefully some good will come of it.