Another Democratic committee, another bunch of corporate shills: gutting regulation to benefit oligarchy
"the 10-year CFTC reauthorization would preserve loopholes in derivatives regulation while leaving the agency under-resourced and vulnerable to industry lawsuits."
“The CFTC has become the Achilles’ heel of Dodd-Frank,”
"In the 2006 election cycle, the American Bankers Association and the four banks that dominate the swaps market — J.P. Morgan Chase, Bank of America, Citigroup, and Goldman Sachs — contributed $218,000 to agriculture committee members. The same group of donors gave more than $370,000 to committee members from 2011-2012. Since 2017, they have given more than $515,000 to current members."
"the agency now oversees are many types of the credit default swaps that fueled demand for subprime loans, as well as the notorious interest-rate swaps that banks peddled to hundreds of local governments and school districts, who then paid billions just to exit the highly unfavorable contracts."
"When Dodd-Frank passed in 2010, the Wall Street reform included a provision requiring federally insured banks to stop engaging in some of the riskiest types of trades and move their swap desks into separate affiliates."
"[December 2014] bank lobbyists reportedly worked with Republicans to slip a provision into the year-end appropriations bill that radically weakened the swaps pushout rule."
"Thanks to the change, major banks including J.P. Morgan Chase, Citibank, Goldman Sachs, and Bank of America were able to retain $10.5 trillion worth of swaps"
"Among the committee’s majority members, 14 representatives are aligned with the New Democrat Coalition, a group that fundraises heavily from Wall Street ... Eleven members of the House Financial Services Committee are part of the centrist coalition, and have drawn fire from progressives for backing deregulation ... Several Democratic members also received sizable donations from executives at the hedge fund Bain Capital"
Read the whole thing:
https://theintercept.com/2019/12/03/wall-street-house-democrats-financial-regulations-cftc/Brokksley Born's comments on CFTC and regulation from twenty years ago are prescient.
sidd