Wall Street Deregulation Garners Bipartisan Support Despite Devastating JPMorgan Report
http://www.huffingtonpost.com/2013/03/19/wall-street-deregulation-_n_2910168.htmlPosted: 03/19/2013 7:38 pm EDT | Updated: 03/19/2013 7:45 pm EDT
WASHINGTON -- A bipartisan cadre of House lawmakers will move on legislation to deregulate Wall Street derivatives Wednesday, less than a week after Sen. Carl Levin (D-Mich.) released a devastating report on the multibillion-dollar derivatives debacle at JPMorgan Chase. "The road to hell is paved with these bills," said Rep. Alan Grayson (D-Fla.), an advocate of financial reform.
The House Agriculture Committee will mark up several derivatives bills on Wednesday despite opposition from a coalition of public interest and consumer advocacy groups known as Americans for Financial Reform. The effort to weaken regulation of these sophisticated financial instruments follows multiple in-depth autopsies of the London Whale debacle at JPMorgan, which has already cost the company $6.2 billion and tarnished its reputation as a prudent risk manager. It also comes less than three years after the Dodd-Frank Wall Street reform legislation, signed into law by President Barack Obama in 2010, set a host of new standards for the derivatives business, including heightened transparency and reduced taxpayer support.
Jamie Dimon, CEO of JPMorgan Chase, smiles while testifying before the House Financial Services Committee in Washington on June 19, 2012. (AP Photo/Jacquelyn Martin)
In a statement provided to The Huffington Post, Levin expressed exasperation at the House efforts. "Last year, some members of Congress supported watering down Dodd-Frank derivative safeguards, but abandoned those efforts after the world learned that JPMorgan Chase had lost billions of dollars on derivative trades made out of its London office," Levin said. "It is incredible that less than a week after new JPMorgan Whale hearings detailed how the bank's London office piled up risk, hid losses, and dodged regulatory oversight, that some House members are again supporting the weakening of derivative safeguards."
Derivatives were at the heart of the 2008 financial collapse. The preferred financial vehicle for a host of risky bets on the U.S. mortgage market, they created artificial demand for subprime mortgages, encouraging banks and mortgage brokers to extend loans to doomed borrowers. Derivatives pushed insurance giant AIG to the brink of bankruptcy and proved a hotbed for abuse on Wall Street. Goldman Sachs famously settled with the Securities and Exchange Commission for betting against the very derivatives it created and sold to its clients...More
http://www.huffingtonpost.com/2013/03/19/wall-street-deregulation-_n_2910168.html
Lots of time for this! No time for jobs though...
= new reply since forum marked as read
I hate to bring up Greece because people will be quick to point out it can't happen here. But it damn well can, and deregulating derivatives would be exactly what causes it. It would quite literally bankrupt our economy (like it isnt already). You want $12 a gallon gas? $15? 20? You want commodities like food and water to be so expensive very few can afford them? That's exactly what will happen. 
Edit: How about us being allowed to hedge our future with no bail outs, ever, again?
...again. We just don't know when. I think I seen somewhere that unless regulated, what happened in 2008 might recur once every 10 years. Or that it will happen again and again and again. OK. Kindergarten 101. If you did something that hurt very very bad, like if it made you bleed bigger than a ban-aid's worth, like if it almost cut the heart right out of your little chest, would you do it again? Duh??????
And Levin is retiring.
We better get busy and ready for 2014. If we don't get a majority in both Houses of Congress, this country is down the effing tubes.
Whatever it is that the Corporatistas have up their sleeves, it isn't good.
Last edited Fri Mar 22, 2013, 12:40 AM - Edit history (2)
Let's just keep giving all the money to the scumbags and assholes who just keep driving our economy into the ground and they get richer while we suffer. If we deregulate derivitives trading, you can kiss economic recovery goodbye. Can you say $12 a gallon gas? $15? $20? You want food and water prices so ridiculously high that only a slim majority can afford them? It would quite literally be economic suicide for us.
There is never a long enough break between hits to enable me to recharge it.
They've won. I'm beaten down, apathetic, and nearing the point where I no longer care about anything but my immediate family. 
The House Agriculture Committee approved Seven Legislative Proposals Amending Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
** A note from Chairman Frank Lucas: "I appreciate the bipartisan leadership of my colleagues on the bills that advanced today. Our effort is to ensure that America's job creators - our farmers, ranchers, small businesses, government utilities, and manufacturers - are not overburdened by financial regulations. Without these important changes, regulations could deter businesses from hedging against risk, which is contrary to the purpose of financial regulatory reform," said Chairman Frank Lucas.
** Meaning they can Swap without it being Secured by Money by them so when it goes belly up they lose Nothing and Us (taxpayer) are in the Hook, like a fish, and if your Foreign Swapping you Don't have to be Governed by U.S. Regulations,which many are U.S. Swapping through Foreign Swaps! * We can see the problems Foreign Financial Institutions are having with their own Regulations as we speak! ..Is what I get from it all 
The bills include the following:
H.R. 634, the Business Risk Mitigation and Price Stabilization Act, ensures that end-users can continue to use derivatives to manage business risks without being subject to costly margin requirements.
**SPONSORS: Reps. Michael Grimm (R-NY), Gary Peters (D-MI), Austin Scott (R-GA), and Mike McIntyre (D-NC)
H.R. 677, the Inter-Affiliate Swap Clarification Act, ensures that transactions between affiliates within a single corporate group are not regulated as swaps.
**SPONSORS: Reps. Steve Stivers (R-OH), Gwen Moore D-WI), Chris Gibson (R-NY), and Marcia Fudge (D-OH)
H.R. 742, the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013, would allow data sharing between U.S. and international regulators and swap data repositories without adding an unnecessary layer of legal bureaucracy.
**SPONSORS: Reps. Rick Crawford (R-AR), Sean Patrick Maloney (D-NY), Bill Huizenga (R-MI), and Gwen Moore (D-WI).
H.R. 992, the Swaps Regulatory Improvement Act, amends Section 716 of the Dodd-Frank Act to limit the swap desk push-out requirement so that it only applies to certain swaps based on certain asset-backed securities and does not disadvantage U.S. institutions compared to their international counterparts who have no similar restrictions.
**SPONSORS: Reps. Randy Hultgren (R-IL), Richard Hudson (F-NC), Sean Patrick Maloney (D-NY), and Jim Himes (D-CT)
H.R. 1003, would require the CFTC to assess the costs and benefits of its actions.
**SPONSORS:Reps. Mike Conaway (R-TX), David Scott (D-GA), Jim Jordan (R-OH), Patrick McHenry (R-NC), and Scott Garrett (R-NJ).
H.R. 1038, the Public Power Risk Management Act, would allow producers, utility companies, and other non-financial entities to continue entering into energy swaps with government-owned utilities without danger of being required to register with the CFTC as a swap dealer.
**SPONSORS: Reps. Doug LaMalfa (R-CA), (Jeff Denham (R-CA), John Garamendi (D-CA), Blaine Luetkemeyer (R-MO), and Jim Costa (D-CA).
H.R. 1256, the Swap Jurisdiction Certainty Act, would direct the CFTC and the Securities and Exchange Commission to adopt a joint rule on how they will regulate cross-border swaps transactions as part of the new requirements created in the Dodd-Frank Act.
**SPONSORS: Reps. Scott Garrett (R-NJ), Mike Conaway (R-TX), David Scott (D-CA), and John Carney (D-DE)
*The Seven Legislative Proposals Amending Title VII of the -- Dodd-Frank Wall Street Reform and Consumer Protection Act, Will now go to the Full House!
*redqueen gave you the link to see the Committee Members faces now link them to the bills they Sponsored. heres the link from redqueen: http://agriculture.house.gov/about/membership ~ TY redqueen Each Bills Sponsors -- Differ with each Bill.
All bills found at: Agriculture.house.gov click Legislation, then Current Legislation to get to the Bills, they have not been sent to Thomas Library as of yet and can only be viewed here.
