Dodd-Frank Delays Bring ‘Temporary Relief’ for Banks

Dodd-Frank Delays Bring ‘Temporary Relief’ for Banks

by Marian Wang ProPublica

There are yet more delays in implementing financial reform. The Commodity Futures Trading Commission has said it needs extra time to write a set of derivatives rules required by Dodd-Frank, and others that were scheduled to go into effect automatically next month may be deferred until the end of the year [1]—leaving the multi-trillion-dollar market mostly unregulated for the time being. The agency is meeting today [2] to hammer out the details of the delay.

Derivatives are essentially bets on the value of an asset [3], and though there are many legitimate uses for these financial instruments, they can also be used by speculators in such a way that destabilizes markets—or, for that matter, entire financial systems. Dodd-Frank aims at making many of those transactions more transparent.

The commission’s chairman, Gary Gensler, said the extra time could be considered “some interim relief [4]” for Wall Street. He’s also said in recent days [5] that volatile commodities prices and speculation in the commodities market show that new derivatives rules are needed.

The delay doesn’t come as a surprise. As the New York Times noted last week [6], the agency in April extended the time for public comments by a month. It has been swamped with meetings with financial industry lobbyists and has even received forged comment letters [7] from stakeholders hoping to influence the derivatives rules.

All this lobbying may have had an effect. Gensler spoke to the U.S. Chamber of Commerce last fall and laid out a strict timetable [8] for implementing derivatives regulations—and nine months later, his agency is figuring out a new one [9].

The CFTC isn’t the only one falling behind on derivatives rules. Securities and Exchange Commission—which is tasked with writing rules for a category of security-based derivatives—has said that it will also be delaying them and providing some “temporary relief [10].” The Washington Post noted that the SEC has yet to draft some of its rules [11].

But derivatives are just one of several areas of the financial reform overhaul that’s running into stumbling blocks [12], as we’ve reported. Regulators had to get past the threat of budget cutbacks [13], many key positions at regulatory agencies still sit empty [14], and various players have been lobbying hard to loosen the rules.

And there’s also this: Opponents to financial reform are still trying to repeal the bill or roll back key parts of it. The Wall Street Journal reported that at least three Republican senators are considering attaching fin-reg busting amendments [15] this week to a non-controversial bill about economic development:

In fact, one amendment filed by tea-party Sen. Jim DeMint (R., S.C.) would repeal the whole financial law.

… Meanwhile, Sen. Jerry Moran (R, Kan.) has filed an amendment that would replace the new Consumer Financial Protection Bureau—a centerpiece of Dodd-Frank that would have broad powers over the financial industry—with a six-person board. His amendment would also allow Congress to make decisions on the agency’s funding levels. The board would include the comptroller of the currency and other agencies.

… A third amendment, filed by Sen. David Vitter (R, La.) would repeal parts of the Dodd-Frank law that give a council of regulators, known as the Financial Stability Oversight Council, the authority to decide if a company is “too big to fail.” It would also block the Federal Reserve from bailing out failing companies and set rules for Fed emergency-lending programs.

Some of the law’s more outspoken critics have also vowed to block any candidate [16] to lead the Consumer Financial Protection Bureau.

~

4closureFraud.org

Comments
8 Responses to “Dodd-Frank Delays Bring ‘Temporary Relief’ for Banks”
  1. l vent says:

    THIS STINKS TO THE HIGH HEAVENS. THROW DODD AND FRANK IN PRISON WITH THE CEO’s OF FANNIE/FREDDIE AND ALL OF THE BANKS. DODD AND FRANK AND MOST OF THESE CONGRESS MEMBERS ARE COMPLETELY CORRUPTED BY THE FOREIGN MULTINATIONAL/NEW WORLD ORDER. MANY OF THEM ARE MEMBERS. THEY ARE ALL TREASONIST BASTARDS.

  2. Marvin Keith says:

    The Gramm–Leach–Bliley Act of 1999, a purely Republican bill, repealed part of the Glass–Steagall Act of 1933, opening up the market among banking companies, securities companies and insurance companies. This was the main cause of the economic crash we are in now. Three Democrats, Congressman Barney Frank and Senator Cris Dodd and President Jimmie Carter passed the 1980 Community Reinvestment Act which led to the U.S. Government guaranteeing a lot of sub prime mortgage loans that US taxpayers are now bailing out. There is much more blame on both sides. It will never be time for the Republican legislators to continue their disastous and obscene support for the investment banking industry. This nation is doomed if the banks remain in charge.

    • l vent says:

      I have been saying all along this started with Nixon who took us off the gold standard and put up our land as collateral in the U.N. for credit and now all land in the U.S. is held in fee simple by the U.N./NEW WORLD ORDER/REVIVED ROMAN EMPIRE/ VATICAN/JESUITS. Then Reagan deregulated the banks. Every President/CONGRESS both REPUBLICON AND DEMORAT has chipped away at our freedom. There is an UNHOLY and UNCONSTITUTIONAL ALLIANCE between our treasonist POLITICIANS and the U.N./NEW WORLD ORDER. They wear many disguises like The World Bank, The IMF, NATO, THE CENTRAL BANKS, THE VATICAN, THE BLACK POPE, THE WHITE POPE, The Federal Reserve, The FDIC INSURED Banksters, Wall Street, FANNIE AND FREDDIE,BERNANKE, GEITHNER, PAULSON, NASA, NAFTA, HENRY KISSINGER, BILL CLINTON (THE SO CALLED PRESIDENT OF THE WORLD MSNBC CLAIMED BECA– USE OF HIS UN CONNECTIONS) THE WORLD COUNCIL OF CHURCHES, the upper tranches of the Federal Gov., THE WCPA, The Bilderbergs, The Trilateral Commission, The Council on Foreign Relations, The MAINSTREAM MEDIA, THE ILLUMINATI (YOU TUBE SEARCH CNBC ILLUMINATI CRASHES STOCK MARKET), THE MOSSAD etc. THERE ARE 4 PEOPLE WHO OWN AND CONTROL ALL OF THE WEALTH AND THE WANT TO KEEP IT THAT WAY. The want no Sovereign Nations, A ONE WORLD FASCIST DICTATORSHIP, A PAPERLESS CURRENCY, NO PRIVATE OWNERSHIP OF ANYTHING BY THE PEOPLE, A WORLD CONSTITUTION, A ONE WORLD BORDERLESS GOVERNMENT A NATIONS OF DEBT SLAVES WORKING FOR THEM FOR SPIT, NO MEANINGFUL PERSONAL WEALTH WHATSOEVER FOR ANY OF US, . THAT IS THEIR EVIL NEW WORLD ORDER PLAN. GOOGLE AGENDA 21 OR ANY OF THE WORDS I MENTIONED. YOU TUBE HAS TONS OF VIDEOS ABOUT THEM.

      • Readdocs says:

        “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
        Thomas Jefferson, (Attributed)
        3rd president of US (1743 – 1826)

  3. Wayne says:

    I would like to see Lobbying as we know it as a criminal action. It is like tampering with the Jury the way it is working now. It hinders from making accurate and sound judgement for the people. Special interest groups should be banded

    • leapfrog says:

      Agreed, but the ones who accept the bribes (lobbying) should be the ones facing criminal action. I see no difference between lobbyists and drug-pushers.

    • qwester says:

      1. Let the lobbyists lobby, but not face to face in private unless they are a resident of the politicians district or state. Otherwise restrict them to public email or video conference. They can make their case openly or not at all. Rather than lobbyists they would be called emailists. While we cannot limit a constituents access to a representative we can limit a politician’s access to secrecy.
      2. Corporations are not persons and must not have constitutionally protected status. This excess of power when financed by corporate revenue becomes the dog and we the people become the tail getting routinely wagged in court and in the ballot box. Commercial mercantile political power is reducing this nation to a graveyard of dry husks, drained of equity and value, populated by a power based colony of jackals snarling over our hopes and dreams so as to gnaw out the very last scrap of exploitable value. Witness the ipad-pod-pud success, now smarter than its owner who, enthralled by vanity, loses every true connection to the real world, engorging on tunes and performances beamed right into their psyches and capable of destroying their frame of mind via some trivial occurance. The youth of the world is being polluted as we speak. We depend more and more on an intelligent, wise electorate, capable of maintaining our miraculous form of government in the face of active enemies and latent dynasties lurking behind the screen of custom and habit, exploiting silently each opening we naively provide. These lurkers watch our young deducing eventual weaknesses to exploit. Worse than child molesters they are nation and culture molesters operating through the weaknesses of our education, our families, our political savvy, our technical ability, our health, our wisdom, our fragmented identities; political, racial, religious, geographic, and social among others.
      3. There is one further fatal weakness, related to 2. above, but deserving of separate mention. There is no one in charge of our government. The founders never dreamed of the advancements and failures we have made. Our president obama has demonstrated the dangers of executive abuse possible even with the shared triumvirate form we enjoy. I am no student of government but I can see that all three branches have been politicized into ineffectiveness. As I learned it, there is a president in charge of running the country, so to speak. Also there is a legislature and a judiciary with defined powers and limits. We all know this. My take on this is that the presidency under the current administration and the preceding four has been destroyed by the constant din of the forum based media enabled politicizing of the same political party following a script calculated to influence the unwary, the uninformed, the under educated, and the under financed constituent. This damage is proved by the total absence of comment by the media regarding the pusillanimous mendacity of the current occupant of that highest office, as he, working retrograde, uses extravagant buses on a campaign tour masquerading as a fact finding sojourn; routine public displays attacking our congress while he himself indulges in indolence and sloth regarding a budget, on and on, back to his outright prevarication regarding the kind of administration he promised. Obama’s behavior damaged those who share certain aspects of his identity and who looked to him to be the shining example of success that one who acceded to the highest office of the land is expected to exhibit. Instead they got the same level of performance typical of a conscienceless pimp with a stable of meat which is obviously how he sees his supporters. He sure isn’t a neighborhood orgasmiser now although they all sure got focked. No candidate with his aspects will succeed to his level for a long, long time.
      4. My solution to 3, above is to prevent the president by law from enacting any new policies at all during his first term lacking a 75% majority of both houses and 80% of the supreme court.

      • lvent says:

        qwester, the banks should NOT be ALLOWED, IN PRIVATE OR OTHERWISE, to lobby politicians or fund their campaigns AT ALL…THAT IS PART OF THE REASON WE ARE ALL HERE TODAY AND THERE IS NO JUSTICE FOR MAINSTREET…IT IS CALLED AN UNCONSTITUTIONAL AND ILLEGAL CONFLICT OF INTEREST.

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