The big boys on Wall Street have seen fit to take your tax dollars and use them to setup a financial dictatorship that prevents competition and monopolizes the derivatives markets.
The banks love regulation, especially the kind that prevents competition. Thus the criminal bankers have WRITTEN the bill that will supposedly put the regulation in place to prevent future implosions.
Needless to say, this is like having a bank robber write the laws pertaining to bank robbery.
Washington’s Blog reports:
Harold Bradley – who oversees almost $2 billion in assets as chief investment officer at the Kauffman Foundation – told the Reuters Global Exchanges and Trading Summit in New York that a cabal is preventing swap derivatives from being forced onto clearing exchanges:
“There is no incentive from the moneyed interests in either Washington or New York to change it…
I believe we are in a cabal. There are five or six players only who are engaged and dominant in this marketplace and apparently they own the regulatory apparatus. Everybody is afraid to regulate them.”
And who might that cabal be?
The financial industry isn’t leaving anything to chance, however. One sign of a newly assertive Wall Street emerged recently when a bevy of bailed-out firms, including Citigroup, JPMorgan and Goldman Sachs, formed a new lobby calling itself the Coalition for Business Finance Reform. Its goal: to stand against heavy regulation of “over-the-counter” derivatives, in other words customized contracts that are traded off an exchange…
And today, Treasury gave the financial giants exactly what they wanted. As Bloomberg writes in an article entitled “Wall Street Derivatives Proposals Adopted in Treasury Overhaul “:
“Wall Street’s largest banks are getting what they want in the U.S. Treasury’s plan to regulate over-the-counter derivatives by making all market participants adhere to the same capital requirements…
“The banks appear to wish to maintain the intra-dealer market and raise barriers to new entrants to keep the OTC business as compartmentalized as possible and to protect their profitable market conditions,” said Brad Hintz, an analyst at Sanford C. Bernstein & Co. in New York. “The Street’s lobbyists appear to be asking for a ‘club’ structure in OTC trading.”…”
Read about how the banks actually wrote this bill here.