According to the following, it appears that business wants to privatize profits while at the same time socializing the risk by use of the FDIC: “The deal was announced late yesterday after Democrats accepted Republican demands to undo some regulations including the banking provision, a big victory for Wall Street. It lets JPMorgan Chase & Co., Citigroup Inc. and other lenders keep swaps trading in units with federal backstops …[FDIC]... Some Senate Democrats oppose the Dodd-Frank proposal, including Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts. Warren in a statement today called the change ‘reckless.’ Lawmakers included the measure in the 2010 Dodd-Frank law to protect taxpayers against bank losses after souring derivatives trades spurred a U.S. rescue of the financial industry in 2008. The Federal Reserve and Office of the Comptroller of the Currency provided a two-year delay in 2013 as long as banks take reasonable steps to move swaps to affiliates that don’t benefit from federal deposit insurance and discount borrowing.”
Posted on: Wed, 10 Dec 2014 17:54:31 +0000
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