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Wed Mar 20, 2013, 04:46 AM

 

Wall Street Deregulation Garners Bipartisan Support Despite Devastating JPMorgan Report

http://www.huffingtonpost.com/2013/03/19/wall-street-deregulation-_n_2910168.html

Posted: 03/19/2013 7:38 pm EDT | Updated: 03/19/2013 7:45 pm EDT

WASHINGTON -- A bipartisan cadre of House lawmakers will move on legislation to deregulate Wall Street derivatives Wednesday, less than a week after Sen. Carl Levin (D-Mich.) released a devastating report on the multibillion-dollar derivatives debacle at JPMorgan Chase. "The road to hell is paved with these bills," said Rep. Alan Grayson (D-Fla.), an advocate of financial reform.

The House Agriculture Committee will mark up several derivatives bills on Wednesday despite opposition from a coalition of public interest and consumer advocacy groups known as Americans for Financial Reform. The effort to weaken regulation of these sophisticated financial instruments follows multiple in-depth autopsies of the London Whale debacle at JPMorgan, which has already cost the company $6.2 billion and tarnished its reputation as a prudent risk manager. It also comes less than three years after the Dodd-Frank Wall Street reform legislation, signed into law by President Barack Obama in 2010, set a host of new standards for the derivatives business, including heightened transparency and reduced taxpayer support.


Jamie Dimon, CEO of JPMorgan Chase, smiles while testifying before the House Financial Services Committee in Washington on June 19, 2012. (AP Photo/Jacquelyn Martin)

In a statement provided to The Huffington Post, Levin expressed exasperation at the House efforts. "Last year, some members of Congress supported watering down Dodd-Frank derivative safeguards, but abandoned those efforts after the world learned that JPMorgan Chase had lost billions of dollars on derivative trades made out of its London office," Levin said. "It is incredible that less than a week after new JPMorgan Whale hearings detailed how the bank's London office piled up risk, hid losses, and dodged regulatory oversight, that some House members are again supporting the weakening of derivative safeguards."

Derivatives were at the heart of the 2008 financial collapse. The preferred financial vehicle for a host of risky bets on the U.S. mortgage market, they created artificial demand for subprime mortgages, encouraging banks and mortgage brokers to extend loans to doomed borrowers. Derivatives pushed insurance giant AIG to the brink of bankruptcy and proved a hotbed for abuse on Wall Street. Goldman Sachs famously settled with the Securities and Exchange Commission for betting against the very derivatives it created and sold to its clients...More
http://www.huffingtonpost.com/2013/03/19/wall-street-deregulation-_n_2910168.html

Lots of time for this! No time for jobs though...

40 replies, 2232 views

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Arrow 40 replies Author Time Post
Reply Wall Street Deregulation Garners Bipartisan Support Despite Devastating JPMorgan Report (Original post)
green for victory Mar 2013 OP
Turbineguy Mar 2013 #1
HiPointDem Mar 2013 #2
green for victory Mar 2013 #3
xchrom Mar 2013 #4
dtom67 Mar 2013 #5
dmosh42 Mar 2013 #6
Madmiddle Mar 2013 #7
tclambert Mar 2013 #8
djean111 Mar 2013 #11
basspro1o1 Mar 2013 #9
Scuba Mar 2013 #13
basspro1o1 Mar 2013 #24
denverbill Mar 2013 #29
denverbill Mar 2013 #30
denverbill Mar 2013 #31
Soundman Mar 2013 #10
Squinch Mar 2013 #12
sulphurdunn Mar 2013 #14
another_liberal Mar 2013 #15
Bohunk68 Mar 2013 #16
green for victory Mar 2013 #19
sadbear Mar 2013 #25
Initech Mar 2013 #33
redqueen Mar 2013 #17
green for victory Mar 2013 #20
redqueen Mar 2013 #21
snappyturtle Mar 2013 #28
ReRe Mar 2013 #18
Initech Mar 2013 #34
ReRe Mar 2013 #38
City Lights Mar 2013 #22
snappyturtle Mar 2013 #27
LineReply ^
green for victory Mar 2013 #23
ProSense Mar 2013 #26
basspro1o1 Mar 2013 #32
bullwinkle428 Mar 2013 #35
Buffalo Bull Mar 2013 #36
forestpath Mar 2013 #37
Rex Mar 2013 #39
LeftInTX Mar 2013 #40

Response to green for victory (Original post)

Wed Mar 20, 2013, 04:58 AM

1. Wall Street hasn't finished

cleaning out everybody else's accounts yet.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 05:00 AM

2. More of that wonderful 'bipartisanship'. They're always so bipartisan when it comes to

 

robbery.

Jamie Dimon to the Hague!

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Response to HiPointDem (Reply #2)

Wed Mar 20, 2013, 05:04 AM

3. Had to triple check the date...

 

cause I couldn't believe my eyes. How can this be?

Buy- Partisanship

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Response to green for victory (Original post)

Wed Mar 20, 2013, 05:34 AM

4. Du rec. Nt

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Response to green for victory (Original post)

Wed Mar 20, 2013, 05:41 AM

5. this is how you destroy a country....

We'll be bailing the banks out again in a few months....

If only I could find some evidence of corruption in our government.... oh, wait....

At least the NDAA is in place to keep all you terrorist poor people from making a big fuss....

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Response to green for victory (Original post)

Wed Mar 20, 2013, 06:15 AM

6. Probably a 'list of crooks' who have something to gain!

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Response to green for victory (Original post)

Wed Mar 20, 2013, 06:34 AM

7. 535 treasonous assholes

to be sent packing reads the headline above the fold. Why? Because this deregulation has caused personal devastation to millions of Americans, yet these assholes still push this.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 06:39 AM

8. Seriously? How stupid can our lawmakers get?

No, no, no. Don't tell me.

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Response to tclambert (Reply #8)

Wed Mar 20, 2013, 07:02 AM

11. They are not stupid at all. We are.

"Our" lawmakers almost all belong to Wall Street.
When we vote, we really are only choosing between two already-purchased and beholden people, no matter what letter comes after their name.
I bet if a poll was taken, almost everybody, Obama on down, would say that Elizabeth Warren and a few others like her are the stupid ones.
Most of the lawmakers who pander to big money are set for life, and know that there will always be a bailout, that there are always social programs to cut if needed.
They know where their money is coming from.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 06:56 AM

9. Billionaires Dumping Stocks, Economist Knows Why

Are we getting ready to see the Wall Street Bubble Burst yet again, at our expense? This article suggest that we are, Billionaires know it's coming. The most telling parts in the article was that Billionaire John Paulsonís hedge fund, Paulson & Co., dumped 14 Million Shares of JPMorgan Chase and Billionaire George Soros recently sold nearly all of his Bank Stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a Million Shares. They are running from the banks as fast as they can dumping stocks as they go. Who pays this time? Please share the link as you see fit, thanks bassie


Billionaires Dumping Stocks, Economist Knows Why: http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/08/29/id/450265?PROMO_CODE=110D8-1&utm_source=taboola Ö via @Newsmax_Media

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Response to basspro1o1 (Reply #9)

Wed Mar 20, 2013, 07:09 AM

13. Good post, welcome to DU!

Walleye bigot here.

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Response to Scuba (Reply #13)

Thu Mar 21, 2013, 09:36 AM

24. ty for the welcome to DU

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Response to basspro1o1 (Reply #9)

Thu Mar 21, 2013, 10:29 AM

29. Wow. Link to a NewsMax ad. Impressive.

Why Warren Buffett Just Hit the Eject Button on Consumer Stocks
http://www.dailyfinance.com/2012/08/09/warren-buffett-dumps-consumer-stocks/
Aug 9 2012

Berkshire Dumps Most of J&J and GE Stakes; Adds Deere & Co.
http://www.minyanville.com/trading-and-investing/stocks/articles/COP-CVS-DE-DG-GE-GM/11/15/2012/id/45884
Nov 15, 2012 2:00 pm


Kind of odd that he was selling the same stocks in August of last year, but buying Deere which is even MORE exposed to recession that consumer stocks. And now it's news in March, 2013.

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Response to basspro1o1 (Reply #9)

Thu Mar 21, 2013, 10:32 AM

30. Even more impressive: Sorosís Firm Buys Shares of Morgan Stanley, Citigroup, JPMorgan Read Latest

http://www.moneynews.com/InvestingAnalysis/soros-Morgan-Stanley-Citigroup-JPMorgan/2013/02/15/id/490537

Here's an article from the exact same site you posted about claiming Soro's is buying the exact same shares you posted him as selling, dated Feb 15, 2013, 9 days after the article you posted.

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Response to basspro1o1 (Reply #9)

Thu Mar 21, 2013, 10:38 AM

31. One more thing.

According to your article: During the second quarter of the year, Paulsonís hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase.


We aren't in the 2nd quarter yet, so this must have been last year. JPM at the end of the 2nd quarter last year was about $30/share. Now it's around $50. If Paulson's hedge fund was dumping, he was an idiot.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 06:57 AM

10. Is there an up side to this?

 

Seems these people are hell bent on destroying the country. I find it hard to believe there is still such a thing as a derivatives market.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 07:04 AM

12. WTF???

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Response to green for victory (Original post)

Wed Mar 20, 2013, 07:09 AM

14. I really don't know what

to say anymore about the corruption of our political system through legalized bribery except that it sure works well for those paying the bribes.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 07:18 AM

15. This is exactly why . . .

This is exactly why we needed so badly to send a few of these mega-bankers to prison (more than a few need to go, but a few would have been a good start). They don't value anything but money and their personal freedom. Since they already have all the money in the World, we can only hope to modify their behavior through some jail time.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 07:30 AM

16. 1792 French Solution.

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Response to Bohunk68 (Reply #16)

Wed Mar 20, 2013, 08:29 AM

19. 2012 Iceland solution is less bloody

 

and they get to think about things for awhile

Icelandic bankers jailed for reckless loans made before crash

29 December 2012

Two of Iceland's most senior former bankers have been jailed for making reckless business loans, following investigations stemming from the collapse of the country's banks in 2008.

Larus Welding, the former chief executive officer of failed Icelandic bank Glitnir, and Gudmundur Hjaltason, a former director at the bank, have each been sentenced to nine months in jail for fraud, a court ruled.

They were sentenced by the Reykjavik District Court after the two men were indicted a year ago on charges that they had "misused their position and grossly endangered the bank's funds" by lending Ä102m to a company called Milestone ehf without guarantees or collateral, the prosecutor said. At the time Milestone was a shareholder in the bank.

Collapse

They are the first bankers from Iceland's three largest lenders to be sentenced to jail for activities linked to the country's financial and economic collapse in 2008...MORE
http://www.independent.ie/business/world/icelandic-bankers-jailed-for-reckless-loans-made-before-crash-28952296.html


Our media is too busy to cover Iceland. They work hard, after all. Almost as hard as the bankers.

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Response to green for victory (Reply #19)

Thu Mar 21, 2013, 09:39 AM

25. Putting bankers in jail is fine. What the hell do we do with politicians?

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Response to green for victory (Reply #19)

Thu Mar 21, 2013, 04:06 PM

33. Sadly I don't think they'll listen until we break out the pitchforks and torches

I hate to bring up Greece because people will be quick to point out it can't happen here. But it damn well can, and deregulating derivatives would be exactly what causes it. It would quite literally bankrupt our economy (like it isnt already). You want $12 a gallon gas? $15? 20? You want commodities like food and water to be so expensive very few can afford them? That's exactly what will happen.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 07:32 AM

17. These assholes need to hear it, from constituents especially.

http://agriculture.house.gov/about/membership

IMO any member of congress putting forward any likely lobbyist-.written bills for these criminals should be sanctioned at the very least.

History shows how badly banks have fucked taxpayers over, again and again, with the help of these fucking parasites.

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Response to redqueen (Reply #17)

Wed Mar 20, 2013, 08:29 AM

20. Thanks for that! Let's let them all hear about it n/t

 

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Response to green for victory (Reply #20)

Wed Mar 20, 2013, 09:33 AM

21. My pleasure. :)

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Response to redqueen (Reply #17)

Thu Mar 21, 2013, 10:06 AM

28. From your link Chairman Lucas' comment:

"I appreciate the bipartisan leadership of my colleagues on the bills that advanced today. Our effort is to ensure that America's job creators - our farmers, ranchers, small businesses, government utilities, and manufacturers - are not overburdened by financial regulations. Without these important changes, regulations could deter businesses from hedging against risk, which is contrary to the purpose of financial regulatory reform," said Chairman Frank Lucas.




Edit: How about us being allowed to hedge our future with no bail outs, ever, again?

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Response to green for victory (Original post)

Wed Mar 20, 2013, 07:46 AM

18. Bend over, folks. Here it comes....

K&R

...again. We just don't know when. I think I seen somewhere that unless regulated, what happened in 2008 might recur once every 10 years. Or that it will happen again and again and again. OK. Kindergarten 101. If you did something that hurt very very bad, like if it made you bleed bigger than a ban-aid's worth, like if it almost cut the heart right out of your little chest, would you do it again? Duh??????

And Levin is retiring. We better get busy and ready for 2014. If we don't get a majority in both Houses of Congress, this country is down the effing tubes.
Whatever it is that the Corporatistas have up their sleeves, it isn't good.

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Response to ReRe (Reply #18)

Thu Mar 21, 2013, 04:14 PM

34. It's the textbook definition of insanity.

Last edited Fri Mar 22, 2013, 01:40 AM - Edit history (2)

Let's just keep giving all the money to the scumbags and assholes who just keep driving our economy into the ground and they get richer while we suffer. If we deregulate derivitives trading, you can kiss economic recovery goodbye. Can you say $12 a gallon gas? $15? $20? You want food and water prices so ridiculously high that only a slim majority can afford them? It would quite literally be economic suicide for us.

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Response to Initech (Reply #34)

Fri Mar 22, 2013, 12:16 AM

38. Get ready, America...

... Spring is here or will be soon. Plan your garden now. Less flowers and more veggies.

They pounded us with 8 yrs of deregulated Wall Street madness under GW and they are continuing right down the same road of destruction under PO. Diagnosis: Unending Wall Street psychopathic madness upon America AND the world. And a People who can't or won't do anything about it. Probably "can't", as our elected leaders do not represent the People anymore. They represent the big banks and the Corporation. If we can't get a filibuster-proof Democratic Senate and large majority in the House in 2014, this grand experiment (Democracy) is over.

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Response to green for victory (Original post)

Wed Mar 20, 2013, 09:42 AM

22. My outrage machine is running on empty.

There is never a long enough break between hits to enable me to recharge it.

They've won. I'm beaten down, apathetic, and nearing the point where I no longer care about anything but my immediate family.

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Response to City Lights (Reply #22)

Thu Mar 21, 2013, 09:54 AM

27. Me too, sadly. nt

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Response to green for victory (Original post)

Thu Mar 21, 2013, 09:48 AM

26. It's a good thing

there are members of Congress fighting to protect Wall Street reform.

"The road to hell is paved with these bills," said Rep. Alan Grayson (D-Fla.), an advocate of financial reform...The House Agriculture Committee will mark up several derivatives bills on Wednesday despite opposition from a coalition of public interest and consumer advocacy groups known as Americans for Financial Reform. The effort to weaken regulation...comes less than three years after the Dodd-Frank Wall Street reform legislation, signed into law by President Barack Obama in 2010, set a host of new standards for the derivatives business, including heightened transparency and reduced taxpayer support.

...Levin expressed exasperation at the House efforts. "Last year, some members of Congress supported watering down Dodd-Frank derivative safeguards, but abandoned those efforts after the world learned that JPMorgan Chase had lost billions of dollars on derivative trades made out of its London office," Levin said. "It is incredible that less than a week after new JPMorgan Whale hearings detailed how the bank's London office piled up risk, hid losses, and dodged regulatory oversight, that some House members are again supporting the weakening of derivative safeguards."

Include Elizabeth Warren.

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Response to green for victory (Original post)

Thu Mar 21, 2013, 03:30 PM

32. Ag Committee Approves Bipartisan Legislation to Tweak Dodd-Frank Act; Passes to Full House.

The House Agriculture Committee approved Seven Legislative Proposals Amending Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

** A note from Chairman Frank Lucas: "I appreciate the bipartisan leadership of my colleagues on the bills that advanced today. Our effort is to ensure that America's job creators - our farmers, ranchers, small businesses, government utilities, and manufacturers - are not overburdened by financial regulations. Without these important changes, regulations could deter businesses from hedging against risk, which is contrary to the purpose of financial regulatory reform," said Chairman Frank Lucas.
** Meaning they can Swap without it being Secured by Money by them so when it goes belly up they lose Nothing and Us (taxpayer) are in the Hook, like a fish, and if your Foreign Swapping you Don't have to be Governed by U.S. Regulations,which many are U.S. Swapping through Foreign Swaps! * We can see the problems Foreign Financial Institutions are having with their own Regulations as we speak! ..Is what I get from it all

The bills include the following:

H.R. 634, the Business Risk Mitigation and Price Stabilization Act, ensures that end-users can continue to use derivatives to manage business risks without being subject to costly margin requirements.
**SPONSORS: Reps. Michael Grimm (R-NY), Gary Peters (D-MI), Austin Scott (R-GA), and Mike McIntyre (D-NC)

H.R. 677, the Inter-Affiliate Swap Clarification Act, ensures that transactions between affiliates within a single corporate group are not regulated as swaps.
**SPONSORS: Reps. Steve Stivers (R-OH), Gwen Moore D-WI), Chris Gibson (R-NY), and Marcia Fudge (D-OH)

H.R. 742, the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013, would allow data sharing between U.S. and international regulators and swap data repositories without adding an unnecessary layer of legal bureaucracy.
**SPONSORS: Reps. Rick Crawford (R-AR), Sean Patrick Maloney (D-NY), Bill Huizenga (R-MI), and Gwen Moore (D-WI).

H.R. 992, the Swaps Regulatory Improvement Act, amends Section 716 of the Dodd-Frank Act to limit the swap desk push-out requirement so that it only applies to certain swaps based on certain asset-backed securities and does not disadvantage U.S. institutions compared to their international counterparts who have no similar restrictions.
**SPONSORS: Reps. Randy Hultgren (R-IL), Richard Hudson (F-NC), Sean Patrick Maloney (D-NY), and Jim Himes (D-CT)

H.R. 1003, would require the CFTC to assess the costs and benefits of its actions.
**SPONSORS:Reps. Mike Conaway (R-TX), David Scott (D-GA), Jim Jordan (R-OH), Patrick McHenry (R-NC), and Scott Garrett (R-NJ).

H.R. 1038, the Public Power Risk Management Act, would allow producers, utility companies, and other non-financial entities to continue entering into energy swaps with government-owned utilities without danger of being required to register with the CFTC as a swap dealer.
**SPONSORS: Reps. Doug LaMalfa (R-CA), (Jeff Denham (R-CA), John Garamendi (D-CA), Blaine Luetkemeyer (R-MO), and Jim Costa (D-CA).

H.R. 1256, the Swap Jurisdiction Certainty Act, would direct the CFTC and the Securities and Exchange Commission to adopt a joint rule on how they will regulate cross-border swaps transactions as part of the new requirements created in the Dodd-Frank Act.
**SPONSORS: Reps. Scott Garrett (R-NJ), Mike Conaway (R-TX), David Scott (D-CA), and John Carney (D-DE)

*The Seven Legislative Proposals Amending Title VII of the -- Dodd-Frank Wall Street Reform and Consumer Protection Act, Will now go to the Full House!

*redqueen gave you the link to see the Committee Members faces now link them to the bills they Sponsored. heres the link from redqueen: http://agriculture.house.gov/about/membership ~ TY redqueen Each Bills Sponsors -- Differ with each Bill.

All bills found at: Agriculture.house.gov click Legislation, then Current Legislation to get to the Bills, they have not been sent to Thomas Library as of yet and can only be viewed here.

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Response to green for victory (Original post)

Thu Mar 21, 2013, 04:17 PM

35. Glass-Stegall repeal, v2.0.

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Response to green for victory (Original post)

Thu Mar 21, 2013, 04:21 PM

36. why do Capitalists spend so much time trying to prove Marx right


He who ignores history..history were talk just a few years ago.
It is an evangelical faith with these people.
Any regulation is bad.

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Response to green for victory (Original post)

Thu Mar 21, 2013, 04:22 PM

37. Obama will be pleased as punch to sign a bipartisan bill.

 

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Response to green for victory (Original post)

Fri Mar 22, 2013, 12:18 AM

39. He knows they own Congress

and he gets what he wants.

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Response to green for victory (Original post)

Fri Mar 22, 2013, 12:31 AM

40. Kick - just to keep this depressing thread going

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