Barney "No need to force banks out of swaps"

[WhiskeyGirl]

(Reuters) - A U.S. lawmaker charged with a key role in hammering out a final financial regulation bill said on Tuesday there is no need to force banks out of the lucrative over-the-counter derivatives business -- a potentially big win for Wall Street firms.

Barney Frank, the Democratic congressman named to chair the House-Senate panel that will craft the final bill, said he disagreed with language in the Senate's bill that could force banks to spin off their derivatives trading desks.

Banks should be allowed to use derivatives, Frank, chairman of the House of Representatives Financial Services Committee, said at an event in Washington.

New rules for the $615 trillion over-the-counter derivatives business are one of the most contentious parts of the broad regulation bill. One veteran banking analyst has said the legislation, including new derivatives rules, could lower the banking industry's earning capacity by about 25 percent.[/quote]

more here - http://www.reuters.com/article/idUSTRE64O3WD20100525

Is it all about making money for Wall Street?  Big global players?  Obama's special interests?

Wasn't it Barney who insisted that Freddie/Fannie were safe?  The financial system was sound?

Some, just didn't want poor people to have houses?

[WhiskeyGirl]

"Derivatives Reform May Put Dollar in Foreign Hands"

"Forcing these activities out of insured depository institutions would weaken both financial stability and strong prudential regulation of derivative activities," and therefore [would be] "inconsistent with the important goals of financial reform legislation."

more here - http://www.thestreet.com/story/10765212/3/derivatives-reform-may-put-dollar-in-foreign-hands.html

Hmmm...let me think about this one...

As a taxpayer, do I want the global derivatives casino to remain open, and funded, insured by US taxpayers?

Or, should those gambling away trillions dig into their own pockets for front money?  Insurance to cover losses?

Should "insured depository institutions" be in the gambling business?

Why shouldn't they risk their own money?