Democrats reach deal on $450 trillion swaps market

Daily Caller ^ | 4/26/10

[kangpin]

As bank reform legislation failed to pass a key test vote in the Senate, Democrats released a deal late Monday they struck amongst themselves over how to regulate the opaque $450 trillion derivatives market.

There are a number of controversial measures in the derivatives package, none more so that a provision that would have commercial banks divest their entire derivatives divisions if they want to continue to have access to the government safety net.

The deal on derivatives comes after Republicans voted unanimously to oppose a key procedural motion put forward by congressional leaders that would have allowed for a debate on the financial institution bill by the full Senate. Democrats are set to schedule another vote on beginning Senate debate on bank reform as soon as Wednesday.

[GailA]

btt

[combat_boots]

“Wall Street Didn’t Rip You Off...”

http://www.youtube.com/watch?v=nu_4-bmJhu4

“Barack Obama is the Lollipop King...”

http://www.youtube.com/watch?v=9GV8vFK-GWI

[goodnesswins]

later

[Don Corleone]

Why are the Pubbies even talking to the Communists? They have the 41 votes now, if they keep them corralled, and can prevent this mad administration from taking us any further into the bottomless pit they are digging for us.

[givemELL]

This MUST mean that the entire derivative liabilities will be TRANSFERRED ENTIRELY to the taxpayer before they are ever marked-to-market. Are YOU ready? “Better bankruptcy for thee than me”, sayeth the banker to the taxpayer through Sen. Dodd.

“Not me!!” screameth the taxpayer, if he have any senseth, “BY DODD!!”

[mlocher]

If the Dodd bill, or significant portions of it, becomes law, the US banking industry will be at a disadvantage compared to the global banking industry. What the heck, we may as well pass regulation that will encourage the formation of tens of thousands of jobs.....overseas.