Geithner Adopts Part of Wall Street Derivatives Plan

[Badgerman]

Source: Bloomberg

May 23 (Bloomberg) -- The U.S. Treasury’s plan to regulate the over-the-counter derivatives market outlined by Secretary Timothy Geithner on May 13 contains recommendations similar to those made by Goldman Sachs Group Inc., JPMorgan Chase & Co., Credit Suisse Group AG and Barclays Plc three months earlier.

The banks sent the Treasury a plan written in February titled “Outline of Potential OTC Derivatives Legislative Proposal,” saying the Federal Reserve should extend capital and margin requirements to companies and hedge funds that trade in the $592 trillion unregulated market, according to a document obtained by Bloomberg News and confirmed by the Treasury. Energy companies, corporations and hedge funds don’t face such requirements now, while banks do under central bank oversight.

“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 more: http://www.bloomberg.com/apps/news?pid=20601087&sid=anm...

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Could be the final straw in the bundle of 'proofs' that this administrations economic policy is run completely by the creatures that created the mess. Geithner agrees that an exclusive club made up of the largest beneficiaries of our tax dollar bailout should be established. Further that their 'profitable market conditions' need these things to protect them.

Read the whole article and if you have some anti-nausea pills laying around I suggest you take an overdose...this is some of the sickest crap yet! The next logical steps this bunch will take would be to allow waterboarding by local police agencies, and the complete removal of all public health-care for women and children (in order to save to pay for continuing Wall St bailouts).

This crap has got to be stopped NOW, Obama and anyone else supporting these sort of programs and policies have got to have all the pressure that can possibly brought to bear placed on them. People must be made aware that this isn't a Dem vs Them situation, money truly does OWN this country today, we cannot outspend them, but we still have enough health and energy to stop them (and those resources are rapidly dwindling).