Articles tagged with: Derivatives
“In a brief advisory statement, the Commodity Futures Trading Commission has closed a specious, lobbyist-concocted loophole in the regulation of the derivatives markets. By doing so, the Commission has reaffirmed one of the most important and hard-won victories of the Dodd-Frank Act.”
Commercial banks – the traditional focus of financial regulation – no longer stand at the center of the financial system. Broker-dealers, money market funds, asset managers, and insurance companies have become key actors, with the potential to shake the stability of the whole economy. Join prominent experts, reform advocates, and regulators for a discussion of the “shadow banking” system of market-mediated credit and the steps needed to integrate it into a safer and more sustainable financial system.
“The CFTC is at an important crossroads,” the Washington Post observes. “The 2010 Dodd-Frank Act directed the agency, with 674 employees and a $194 million budget, to oversee a $400 trillion piece of the unregulated derivatives market, a key contributor to the financial crisis. The CFTC has almost finished writing the rules mandated by the law and must now get Wall Street to comply.”
The House of Representatives recently voted to roll back a provision of the Dodd-Frank Act that, as reporter Ailsa Chang explained on All Things Considered (NPR, 11/11/13), “prevents banks from using your deposits to trade …
“’The House is the odd man out in terms of doing Wall Street’s bidding,” says AFR policy director Marcus Stanley. “They’re letting Wall Street write the law to its own benefit in ways that harm the public.”
The House vote to approve this legislation, largely written by Citibank lobbyists, reminds us that Wall Street is still doing everything in its power to protect the status quo that caused the financial crisis… The good news is that 122 House members voted No this time. What started out as a backroom deal between bank lobbyists and legislators wound up being an uncomfortable vote for the dealmakers. That makes it much less likely that the Senate will act, and more likely that the swaps push out provision will finally be implemented.
AFR Policy Director Marcus Stanley participates in debate on ‘Smaller, Simpler Banks’ with Rodgin Cohen (Chair of Sullivan and Cromwell), John Dugan (former Comptroller of the Currency), and Randall Kroszner (University of Chicago; former Governor on the Federal Reserve Board). The debate was sponsored by the International Institute of Finance. As the only public interest representative at the debate, Dr. Stanley defending the need for simplifying and shrinking big banks.
AFR wrote to the banking regulators to urge them to strengthen the new supplementary leverage ratio proposed for large U.S. banks.