From Michael Greenberger, former CFTC General Counsel, at the Make Markets Be Markets conference. (HT Credit Risk Chronicles)
Pending Derivatives Legislation and Legislative Proposals
The Obama Administration White Paper
In response to the catastrophic systemic failure caused by unregulated derivatives, the Obama Administration in its June 2009 White Paper proposed that all standardized OTC derivatives be subject to clearing and [...]
Repost from Chris Whalen’s Institutional Risk Analyst:
~~~ “… Thus we extend and pretend, a policy choice that ensures years of economic stagnation and perhaps even a new financial crisis when non-bank financial institutions start to fail due to ZIRP and the related predations of OTC derivatives. The Fed argues that the large banks cannot be restructured because [...]
Friday, February 26, 2010
Transparency creates stability in financial markets… this is a foundational precept of our system but is rarely argued… the following is from a speech by CFTC Chairman Gensler to the “Energy Bar Association” on February 24th…
~~~ Transparent Trading Requirement
“… It is not enough, though, simply to promote transparency to the regulators.
Financial reform will be incomplete [...]
Tuesday, February 16, 2010
The struggles that Greece is facing to reform it’s fiscal situation are ones that Portugal, Italy, the UK, California, Illinois, New Jersey and others will face… substantial debt loads with diminishing revenue sources and large social commitments… we’ll see this story be replayed over and over… and that doesn’t even take into account the potential [...]
Saturday, February 13, 2010
The bits and pieces are being assembled into a mosaic which is revealing the true enablers of the global credit crisis…
And it’s the trading houses like Goldman Sachs who created financial products, sold them off and then bet against the products they originally created… and often these bits of wizardry were designed to live off [...]
C.R. “Rusty” Cloutier, chief executive officer at MidSouth Bank, talks with Bloomberg’s Carol Massar about President Barack Obama’s proposal to limit U.S. banks’ size and trading activities. Cloutier also discusses the outlook for financial regulation. Mr. Cloutier debunks the argument that America needs massive banks to be globally competitive…
America is being strangled by its [...]
The efforts of global political officials to rein in the global banking elites are falling flat…
President Obama held a meeting of Wall Street bankers at the White House and heads of several of the biggest banks pardoned their absence with weak excuses …
Gordon Brown and Alistair Darling of the UK imposed a “banker bonus” tax and Jamie [...]
Monday, December 14, 2009
The derivatives legislation adopted by the House of Representatives is a landmark… here is how Barney Franks’ staff describes the legislation:
Overview
Over-the-counter derivatives legislation for the first time addresses an unregulated part of the financial markets that poses a potential risk to the broader economy. This risk was more than apparent last year when the failure [...]
Sunday, December 13, 2009
Finextra reports…
~~~”US House backs reforms to clearing house ownership rules … US lawmakers have approved a bill that will place a 20% limit on collective bank ownership of derivatives clearing houses, despite fierce opposition from financial industry participants.
The US House voted 228-202 Thursday to incorporate the so-called Lynch Amendment into the forthcoming Wall Street Reform [...]
Friday, December 11, 2009
Kudos to all in the House who worked so hard on this measure. It marks an important milestone in the real recovery of America… and it’s very nice to see Chairman Frank smiling…
Bloomberg reports…
~~~”The U.S. House voted to tighten rules for derivatives and create powers to break apart healthy financial firms that threaten the economy [...]