"Regulators weaken bank rules on derivatives" by Marcy Gordon | Associated Press, May 17, 2013
WASHINGTON — A rule intended to loosen the largest US banks’ control over the trading of complex investments and help safeguard the financial system was weakened Thursday by regulators.
Can there be any doubt that this government works for Wall Street banks?
Critics say the changes will allow Wall Street banks to continue to dominate the $700 trillion derivatives market....
Derivatives are investments whose value is based on some other investment, such as oil.
It's a bet, folks, but the $tatu$ quo bu$ine$$ paper doesn't want you to know that.
The market was largely unregulated before the 2008 financial crisis. The rule was mandated under the 2010 financial regulatory overhaul.
With fewer price quotes, critics worry that the market will be less competitive. Five of the largest US banks — JPMorgan Chase & Co., Goldman Sachs Group, Bank of America Corp., Citigroup Inc., and Wells Fargo & Co. — account for more than 90 percent of derivatives contracts....
Commissioner Bart Chilton said the commission could have achieved greater transparency by approving the original proposal. But he said a compromise was better than no action.
Yeah, half a shit is better than no shit at all.
‘‘By failing to act, we leave in place unregulated dark markets. These are the very dark markets that got us into the economic mess in 2008,’’ Chilton said.
Yeah, let's not regulate them.
Related: April Fool: Dark Pool
Can you see in there?
Wall Street banks had opposed the higher number of bids. The lower requirement illustrates how banks have managed to tweak mandates from Congress three years ago that regulators are finalizing.
In other words, DODD-FRANK DID NOTHING! It was all a S***-SHOW FOLLEY to make you 'murkns think Congress was addressing the issue.
The banks have also succeeded in weakening a rule that would ban banks from trading for their own profit. The latest version of the so-called Volcker Rule includes an exemption for banks to make such trades when they are used to offset others risks taken.
The rule was named after a former Federal Reserve chairman, Paul Volcker. Its adoption has been delayed largely because of the banks’ objections.
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Can there be any doubt that this government works for Wall Street banks?
