Bank Lobbyists Help in Drafting Financial Bills - Derivatives to make a Comeback! by SHINYGOODGUY

REAL WORLD EVENT DISCUSSIONS

Bank Lobbyists Help in Drafting Financial Bills - Derivatives to make a Comeback!

POSTED BY: SHINYGOODGUY
UPDATED: Saturday, May 25, 2013 07:43
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Friday, May 24, 2013 3:57 PM

It was just 5 years ago that the very secretive derivatives market, controlled mostly by just 5 Wall Street banks (I will reveal those banks in a moment) and..........................

"This tight grip came under fire amid concerns that those banks overcharge some companies for derivatives and pose a systemic risk to the economy."

The above is quoted from a NY Times article, written by Ben Protess, May 16, 2013.

http://dealbook.nytimes.com/2013/05/16/regulators-overhaul-derivatives
-market-but-with-a-caveat/

Back in 2008, the derivatives market was the cause of the near world financial collapse that also nearly brought down A.I.G. They were bailed out by our tax dollars. I'm sure that you guys remember the term "too big to fail," well that risky business has now been given the green light to return..........

"the Commodity Futures Trading Commission voted to adopt an overhaul of the derivatives market, pushing the risky trading from the shadows of Wall Street into the light of trading platforms."

The CFTC is a federal regulating body which oversees the banking industry.
The question is, why would the government permit and expose us to such a risky form of business, and will we be called upon to once again bail them out when shit goes bad. The consensus is that the new set of regulations will prevent such a catastrophe from happening again. Yeah right! Could it be that 5 banks control 90% of the $700 Trillion dollar industry - yes, that's not a typo - $700 Trillion dollars.

Why is this important? Because of the following story in the May 23, 2013 NY Times.............

"Bank lobbyists are not leaving it to lawmakers to draft legislation that softens financial regulations. Instead, the lobbyists are helping to write it themselves. One bill that sailed through the House Financial Services Committee this month — over the objections of the Treasury Department — was essentially Citigroup’s, according to e-mails reviewed by The New York Times. The bill would exempt broad swathes of trades from new regulation."

http://dealbook.nytimes.com/2013/05/23/banks-lobbyists-help-in-draftin
g-financial-bills/

Basically, the Fox is running the Hen House.

Those 5 banks are: Citigroup, JPMorgan Chase, Bank of America, Morgan Stanley and Goldman Sachs.

Here we go again!

SGG

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Friday, May 24, 2013 4:29 PM

JONGSSTRAW

It is very disappointing that Wall Street is running wild again. Whether it's derivatives or bundled real estate junk insured by Fannie Mae, I believe the whole thing is gonna come crashing down again in the near future. It's all a big ponzi scheme, with the last schmoes left holding the bag going bankrupt. One day you're sitting there looking at your 401k statement and thinking your retirement is looking pretty good, and the next minute the President goes on tv and says the economy is about to collapse. No warning, just boom!

What has been done to reform Wall Street and banks since 2008?

Who has been held accountable and prosecuted for what happened in 2008?

How much are U.S. taxpayers still owed from Wall Street bailouts?

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Friday, May 24, 2013 4:43 PM

GEEZER

Keep the Shiny side up

"The cordial relations now include a growing number of Democrats in both the House and the Senate, whose support the banks need if they want to roll back parts of the 2010 financial overhaul, known as Dodd-Frank."

Let's remember that graft is non-patisan.

"When your heart breaks, you choose what to fill the cracks with. Love or hate. But hate won't ever heal. Only love can do that."

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Friday, May 24, 2013 4:57 PM

JONGSSTRAW

Riiight, Dodd-Frank. The two guys who respectfully chaired both the House and Senate Finance and Bank Committees. The two guys who looked like deer in the headlights when the economy collapsed on their watch. I must admit I haven't followed the details of their post-screw-up legislation since then. I know the market is way up and so are my small investments and retirement 401k. So can a 2008 happen again?

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Saturday, May 25, 2013 7:43 AM

NIKI2

Gettin' old, but still a hippie at heart...

Yeah, Shiny, there have been articles virtually every day about how we're on the precipice -- AGAIN -- because nothing really was done. Of course 2008 can happen again, and everything points to it's GONNA happen again. As long as money buys politicians, it will KEEP happening. It's only a matter of "when".

Quote:
Let's remember that graft is non-patisan.

So would you like to tell us, please, precisely WHO it is here who has ever forgotten that, or claimed otherwise, ever??? Or are you just getting your thrills out of focus focus focus on being partisan? --that's a rhetorical question, everyone already knows the answer.

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