[HowardRoark]

Senate Panel Approves Tougher Rules on Derivatives

WASHINGTON — A crack appeared on Wednesday in the Republican wall of opposition to the financial reform bill.

A Republican senator, Charles E. Grassley of Iowa, voted Wednesday in favor of a measure requiring tough regulations on the market for derivatives, the complex financial instruments that were behind much of the breakdown in financial markets two years ago.

He was the lone Republican to side with Democrats on the Agriculture Committee in approving a bill that will now be folded into the larger financial overhaul measure.

.....

The bill would require most derivative contracts to be traded on a public exchange and to be processed, or cleared, through a third party to guarantee payment if one of the traders went out of business.

It also would require most big banks and Wall Street firms to put their derivatives trading business into a separate subsidiary, a move opposed by the banks as well as the Obama administration.

.....

In recent days, however, Republicans have suggested that bipartisan negotiations have restarted and have begun to yield progress, though Democrats have not announced any major changes to the legislation.

_______________________________________________

Is this the regulation we need or is this smoke and mirrors?

 

[RedWoods]

I sure have doubts about this bill being nothing more than another govt power grab with the potential to generate more taxes,fees and even evil political donations.

I hope someone here works in the field and can give some incite.

Red

 

[Steverino]

...or they could just reinstate Glass-Steagall...

 

[aramchek]

Nah, they're just trying to patch up piracy to make it sustainable again. The government that created this can't possibly have the political will to fix it. The best we can hope for is some internal squabbling among the mobsters, and they'll weaken themselves from within through their bickering over the spoils.

 

[ExNav]

http://www.huffingtonpost.com/2010/04/20/jon-stewart-takes-on-gold_n_544102.html

There isn't enough regulation that they could impose. They are lucky i'm not drafting the regulations, these banks would be restricted to savings account and standard loans. And, oh yeah, they would not be allowed to sell them off.

 

[ExNav]

On top of that Goldman gives out 5 billion in bonuses and their dividend is only .88% lol What a sucker bet!!

 

[aramchek]

"Goldman's White House connections raise eyebrows"

http://www.mcclatchydc.com/2010/04/21/92637/goldmans-connections-to-white.html

Add in people like Paul Adolph Volcker, Democrats like Dodd-CT, etc. and it's clear that little or nothing will be done.

My predictions:

• No jail time for any of them, not even a symbolic fall guy.
• Republicans will fight against any reform at all.
• Democrats will penalize honest banks, and create a pool (like FDIC) so the industry can bail itself out when banksters decide to plunder...er... become "weak on" oversight. Socialize the loss through theft, rather than jail the architects (same solution to the S&L's). Costs will be passed onto consumers.
• The corporate media will turn this into a left/right thing.
• Another pot 'o gold will be built up, and subsequently plundered amid yet more partisan bickering (distraction).
• Maybe something really big will hit the media any day now (another war?) in order to provide distraction from this issue and DC will be utterly "focused" on some other topic altogether while this one is buried.

 

[HowardRoark]

"Goldman's White House connections raise eyebrows"

http://www.mcclatchydc.com/2010/04/21/92637/goldmans-connections-to-white.html

What you say in the list above may be true. But the link to "Goldman's White House connections" is not really a smoking gun....

According to White House visitor logs, Blankfein was among the business leaders who attended an Obama speech on Feb. 13, 2009, and he also joined more than a dozen bank CEOs in a meeting with Obama on March 27, 2009.

It is inarguable, Goldman gave money to the Obama campaign. It is possible that the Dems are preparing to feast on their golden goose. Possible. I hope.