Geithner's Foreign Derivatives & Your Wallet

[WhiskeyGirl]

WASHINGTON -(Dow Jones)- The Treasury Department could decide soon whether to exempt some foreign-exchange instruments from new rules governing derivatives, a call that has divided regulators and pit big banks and businesses against those who fear a loophole that could undermine efforts to prevent a repeat of the financial crisis.

Treasury officials say no decision has been made. But the person making it, Treasury Secretary Timothy Geithner, endorsed exempting foreign-exchange products from the new rules when they were being written. He argued then that foreign-exchange derivatives don't pose the same risks to the financial system as others.

How many 'foreign' banks are in a position to tap the endless money supply that seems to spew from the Federal Reserve?  How much have they already received?  U.S. taxpayers acting as the guarantee of future failure?

"The same reasons that require regulation of other swaps and the other parts of the shadow banking system...apply equally to the foreign-exchange markets. The Fed's own emergency actions to save the foreign exchange markets during the crisis prove this," Dennis Kelleher, chief executive of Better Markets Inc., a nonprofit advocacy group wrote in a letter to Mr. Geithner on Friday.

...The law requires most routine derivatives to be traded on exchanges or similar electronic systems...

Who decides what derivatives are exempt?  Maybe the industry will police itself with one hand in the taxpayer left pocket, and the other hand in the taxpayer right pocket, rooting around for money?

Supporters of an exemption say that the sheer size and breadth of the global foreign-exchange market doesn't lend itself to the central clearing mechanism envisioned by the Dodd-Frank law...

Maybe they need to make sure NONE of these 'exemptions' has their hand on the US taxpayer's wallet?  Access to money from the Federal Reserve?

read more here - http://www.automatedtrader.net/real-time-dow-jones/50805/correct-wsj-forex-derivative-regulation-faces-key-us-treasury-decision

When are they going to audit the Federal Reserve?