Friday, June 25, 2010

Frank's Interference

For whom, you may ask:

"
Wall Street dragging feet on derivatives, regulator says" by Marcy Gordon, Associated Press | March 12, 2010

WASHINGTON — Wall Street banks are seeking exemptions to proposed new financial derivatives rules that could shield more than half the trades that should be subject to disclosure, a federal regulator said yesterday

The chairman of the Commodity Futures Trading Commission, Gary Gensler, criticized Wall Street’s stance on proposed oversight for the shadowy $600 trillion derivatives market. Derivatives have been blamed for hastening the 2008 financial crisis, and, more recently, worsening Greece’s debt problems.

Gensler told a financial industry gathering that Wall Street has not been enthusiastic about the proposed new regulations before Congress.

I'm sure they will be taken care of.

Gensler has renewed his call for regulation aimed at bringing transparency to the sprawling global derivatives market. During his address to the meeting of the Futures Industry Association in Boca Raton, Fla., he also got in barbs at Wall Street.

Billions in trading profits for the big investment banks could be threatened by new rules for derivatives....

All made off screwing you, America.

Companies of all kinds use derivatives to hedge against risks — airlines ensuring against spikes in fuel prices, for example.

A potent coalition of nearly 200 companies that use derivatives — including Boeing Co., Caterpillar Inc., Ford Motor Co., General Electric Co. and Shell Oil Co. — has lobbied Congress to make the case that regulating derivatives could severely increase costs for corporate America.

I don't see you entering into the equation, American.

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Better get their man in action.

"Frank balks at derivatives measure; Says provision in Senate finance bill ‘goes too far’" by Alison Vekshin, Bloomberg News | May 26, 2010

WASHINGTON — Representative Barney Frank, who leads the House Financial Services Committee and represents a district based in Newton, will lead a bipartisan panel of lawmakers assigned to merge the House and Senate versions of legislation that will overhaul rules governing Wall Street....

Federal Reserve chairman Ben Bernanke and Federal Deposit Insurance Corp. chairwoman Sheila Bair also oppose the Lincoln swaps-desk language.

A group of House Democrats is considering ways to strip the swaps-desk measure from the bill. Representative Gary Ackerman, a Democrat from New York who serves on the House Financial Services Committee, had his staff circulate a draft letter to House members seeking their opposition....

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Wait until he gets you in the back room:

"Congress moves to blend financial regulation bills

WASHINGTON — Such a House-Senate panel, called a conference committee, is a relatively rare occurrence in Congress. Though it is the textbook means of reconciling bills, congressional leaders in recent years generally have bypassed conferences and worked out legislative differences in private.

This as they are demanding transparency from others.

And so much for that Constitution, huh? They just do what they want.


With Democrats aiming to wrap up their work before the end of the month, banks, retailers, and consumer groups all mustered a final lobbying thrust to influence the legislation.

The Obama administration, meanwhile, looked for quick completion of the bill, eager to have a House-Senate agreement in time for President Obama’s trip to Toronto later this month to meet with the Group of 20 nations. The world’s largest economies are working to coordinate their financial regulatory schemes.

Yup, they wanted it so they go it.

Related: Senate Can't Get Work Done

Whatever, America.

Representative Barney Frank, the Newton Democrat who will chair the conference committee, promised efficiency.

“I will put forward one qualification for this job — my impatience,’’ he joked....

Ha, ha.... ha.

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"All sides press Frank on finance bill; Lawmaker seeks to finish a compromise this week" by Matt Viser, Globe Staff | June 23, 2010

WASHINGTON — Representative Barney Frank, trying to complete intense negotiations between the House and Senate over a massive revision of financial regulations, is coming under significant lobbying pressure from across the political spectrum as he tries this week to come up with a compromise that can win final approval.

On one side, a liberal group is circulating an online petition that admonishes the Newton Democrat “not to give in to Wall Street.’’ On the other, a group of conservative House Democrats has written to Frank saying some of the financial regulations already go too far....

The committee members yesterday moved toward agreement on two key issues. They decided to create a consumer protection bureau that will likely be housed in the Federal Reserve, but will have independent authority to write and enforce new rules....

Then it is no protection at all.

But there are several important details — some worth billions to financial firms — left to be worked out. The committee is continuing to discuss how to regulate derivatives, the financial instruments that are often used to hedge against market fluctuations and yet carry risks that are now often blamed for worsening the financial collapse....

Frank has received nearly $582,000 from the industry over the past year and a half. Frank recently canceled several fund-raisers, telling the Hill newspaper that “it was a mistake to have financial industry-related fund-raisers while this bill was being considered.’’

But tomorrow he will take the check.

Frank said he hopes the committee can complete its work by tomorrow. The bill could be on Obama’s desk by July 4.

It's a done deal.

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Also see
: Frank’s mixed views on F-35 show difficulty of cutting pork

Related: Meet Your Antiwar New England Liberals