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Sat Jan 5, 2013, 03:18 PM

Jesus... 'Banks Win Delay On Derivatives Rule' - FDL

Banks Win Delay On Derivatives Rule
DSWright - FDL
Friday January 4, 2013 7:35 am

<snip>

In what is becoming a trend, the Wall Street banks have been able to once again dodge Dodd-Frank, at least for now.

From Bloomberg:

JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS) and Bank of America Corp. won a delay of Dodd-Frank Act requirements that they wall off some derivatives trades from bank units backed by federal deposit insurance.

Commercial banks including the Wall Street firms may get as long as an additional two years — until July 2015 — to comply with the rules, the Office of the Comptroller of the Currency said in a notice yesterday. The provision was included in Dodd- Frank, the 2010 financial-regulation law, as a way to limit taxpayer support for risky derivatives trades…

JPMorgan had 99 percent of its $72 trillion in notional swaps trades in its commercial bank in the third quarter of 2012, according to the OCC’s quarterly derivatives report. Bank of America had 68 percent of its $64 trillion in its commercial bank, according to the report.


Two points here.

One, did you catch that “backed by federal deposit insurance” part? Yes, these trades are backed by you the taxpayer and your credit vis a vis the Federal Reserve. These banks will continue to make risky bets underwritten by you. If they lose you have to help pay and if they win… well that’s for them to decide isn’t it? It’s the free market (somehow).

Two, the reason the banks pushed for delaying the rule is not to ensure compliance with the rule. They pushed to delay the rule to 2015 in order to buy time to figure out how to get the rule repealed or further diluted. Enter the Financial Services Roundtable and the rest of the lobbyists.

<snip>

Link: http://news.firedoglake.com/2013/01/04/banks-win-delay-on-derivatives-rule/






21 replies, 2132 views

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Arrow 21 replies Author Time Post
Reply Jesus... 'Banks Win Delay On Derivatives Rule' - FDL (Original post)
WillyT Jan 2013 OP
Rex Jan 2013 #1
Initech Jan 2013 #7
Rex Jan 2013 #10
datasuspect Jan 2013 #12
Rex Jan 2013 #13
datasuspect Jan 2013 #14
liberal N proud Jan 2013 #2
spanone Jan 2013 #3
RKP5637 Jan 2013 #5
spanone Jan 2013 #8
RKP5637 Jan 2013 #15
Autumn Jan 2013 #4
RKP5637 Jan 2013 #6
banned from Kos Jan 2013 #9
dixiegrrrrl Jan 2013 #20
Lint Head Jan 2013 #11
Unknown Beatle Jan 2013 #19
xchrom Jan 2013 #16
marmar Jan 2013 #17
librechik Jan 2013 #18
ReRe Jan 2013 #21

Response to WillyT (Original post)

Sat Jan 5, 2013, 03:22 PM

1. Plutocracies work that way.

We sacrifice, they make billions with no risk.

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Response to Rex (Reply #1)

Sat Jan 5, 2013, 03:48 PM

7. Yup. The billionaires and the banks just see us as collateral and profit.

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Response to Initech (Reply #7)

Sat Jan 5, 2013, 04:01 PM

10. Human capital.

That is all we are. A number.

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Response to Rex (Reply #1)

Sat Jan 5, 2013, 04:06 PM

12. socialized financial risk

 

for those with everything.

more uncertainty for those with nothing.

the Uhhhmerican people will remain unrepresented in national politics.

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Response to datasuspect (Reply #12)

Sat Jan 5, 2013, 04:09 PM

13. Well hunger seems more likely for those that have nothing

and for the billionaire? Oh noes! A bad article in TIME! Has to trade down in private jets!

The inequality in this supposed 'civilized' society is stunning.

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Response to Rex (Reply #13)

Sat Jan 5, 2013, 04:12 PM

14. people will have to learn one painful fact:

 

power obtained is power not easily relinquished.

our liberty will once again have to be purchased with blood.

that might sound extreme, but tyrants don't give back what we've freely given them.

the people need to take it back.

but you have to get past that whole lowered intellectual bar that has cursed our country and electorate within the past 50 years.

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Response to WillyT (Original post)

Sat Jan 5, 2013, 03:35 PM

2. I don't think Jesus had anything to do with it

More likely the other guy.

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Response to WillyT (Original post)

Sat Jan 5, 2013, 03:36 PM

3. money talks.....

loudly.

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Response to spanone (Reply #3)

Sat Jan 5, 2013, 03:42 PM

5. And has tremendous power, the rest of us just talk! n/t

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Response to RKP5637 (Reply #5)

Sat Jan 5, 2013, 03:55 PM

8. but we beat the money in the last election!!!

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Response to spanone (Reply #8)

Sat Jan 5, 2013, 04:32 PM

15. Yea !!!!!!!!!!!!!!!!!!!!!!!!!!

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Response to WillyT (Original post)

Sat Jan 5, 2013, 03:38 PM

4. Fuck those thieves and fuck their enabling politicians.

When will we say ENOUGH?

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Response to Autumn (Reply #4)

Sat Jan 5, 2013, 03:43 PM

6. Americans are bred to be lemmings and guppies. n/t

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Response to WillyT (Original post)

Sat Jan 5, 2013, 03:59 PM

9. The "bank units" are backed by the FDIC

 

not the derivatives.

Read closely.

But many derivatives are insured by private firms.

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Response to banned from Kos (Reply #9)

Sat Jan 5, 2013, 05:59 PM

20. And FDIC is funded by the banks, not taxes.

"The FDIC was created in 1933 after thousands of banks failed in the 1920s and early 1930s and has been protecting depositor’s funds since the beginning of 1934. They are an independent agency of the federal government but they get absolutely no funding from Congress. So where do they come up with the money? They get it in one of two ways:

1. Banks and thrifts institutions pay premiums for the FDIC’s insurance coverage.
2. The FDIC invests those premiums in U. S. Treasury securities.

In late May of this year, the FDIC charged an emergency fee (5 cents on $100 of assets, minus certain types of capital) on banks and thrifts to help replenish that fund. It was the first time the special assessment was used since 1996! "
http://consumerist.com/2009/06/20/how-the-fdic-is-funded/

Customers of banks do end up indirectly paying for some of the cost, which is tacked onto banking/loan fees, of course.

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Response to WillyT (Original post)

Sat Jan 5, 2013, 04:02 PM

11. Despicably greedy pieces of arrogant money ass wipers!

These pricks do not give one rats rear end about human beings. I don't give a crap if they have damn families to support they do not care about anything but money, their status in life and the enjoyment of looking down their noses at anyone beneath them. These are the types of vermin who need to be separated from society because they have created the very poverty that kills people through famine, disease and degradation. They make money from screwing people over and death. There is a direct connection between the hording world money mongers and the damage that has been done to human lives throughout the world. Goldman Sachs, Bank of America and JP Morgan pay lobbyists and PR firms to spread the propaganda that what I and others are saying is the slippery slope to socialism or, God forbid, communism.

It's high time The United States moved out of the dark world of primitive tribal control of the masses and into the world of caring about the masses of human life involved. We are letting these greedy criminals get by with slaps on the wrist. They need to be brought to their knees. There are plenty of intelligent people who have empathy for human beings who are willing to take their place.

Just because a financial CEO and it's board have made money screwing people over for years and that's the norm, does not mean they can't be brought down, possibly prosecuted, jailed and replaced. There has to be a financial paradigm shift for that to happen.

Either that or the people need to rise up with an Uber-OWS that has leaders and consequences if there are no results. That would take courage. I think there is still courage in this country. That is one thing the greedy cretins cannot own.

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Response to Lint Head (Reply #11)

Sat Jan 5, 2013, 05:45 PM

19. Yep,

We could learn from Iceland. Prosecute and jail the bankers and politicians that caused this mess.

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Response to WillyT (Original post)

Sat Jan 5, 2013, 05:01 PM

16. Du rec. Nt

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Response to WillyT (Original post)

Sat Jan 5, 2013, 05:04 PM

17. Banksters are like Lola......

Whatever they want, they get.


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Response to WillyT (Original post)

Sat Jan 5, 2013, 05:07 PM

18. Great! so I get to delay my next mortgage payment til 2015! Right? Right?

Obviously the banks don't mind waiting.

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Response to WillyT (Original post)

Sat Jan 5, 2013, 07:19 PM

21. Let's see...

... we get FDIC for a measly $250,000. of our deposits (damn, I wish I had that much money in one bank to insure), and they get it for untold trillions. There's definitely something wrong with that picture. Two year grace period given out by the office of the Comptroller of Currency.

I think there needs to be a little protest planned outside the door of the building of the Comptroller of the Currency's office. Where is that office located, exactly? Hey, even if the riot police jerks beat us and drag us away, all we have to do is take the press with us and get it all documented. Then send in a new crew the next day. And the next day, and the next day, and the next day, into perpetuity until they enforce the the Dodd-Frank laws..

Well, our only salvation is Senator Elizabeth Warren who has a seat on the Banking Committee now, and regaining the House in 2014 as well as building a filibuster-proof Majority in the Senate. I am just crazy enough to have hope that these wishes CAN come true in 2014.

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