Wall Street Lobby Fights Against Derivatives Overhaul

bloomberg.com:

Aug. 31 (Bloomberg) -- Wall Street is suiting up for a battle to protect one of its richest fiefdoms, the $592 trillion over-the-counter derivatives market that is facing the biggest overhaul since its creation 30 years ago.

Five U.S. commercial banks, including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp., are on track to earn more than $35 billion this year trading unregulated derivatives contracts. At stake is how much of that business they and other dealers will be able to keep.

Read the whole story: bloomberg.com

Comments

[nogimmicks]

02:29 AM on 09/02/2009

You can not really call it a fight because nobody fights the bankers. They pretty much own the government and just inform the lawyers (Obama, Senators) about what they want.

[PhilipTaylor]

02:13 AM on 09/02/2009

Record FAKE Government FUNDED PROFITS give impression all is well yet we know hidden “Off-Balance-Sheet” is following:

0ffice of Comptroller of the Currency, 0CC, issues a quarterly Report that has the following info:

1 JPM0RGAN $81TRILLION in Toxic Derivatives
2 BofA $78TRILLION
3 G0LDMAN $48TRILLION
4 M0RGAN $39TRILLION
5 C1T1GROUP $32TRILLION

http://www.occ.gov/ftp/release/2009-72a.pdf
Page 23!

[PhilipTaylor]

02:11 AM on 09/02/2009

G0LDMAN and Wall Street are part of these Illegal activities:

1. MISREPRESENTATION OF HUGH RISK "FAKE RATED" PRODUCTS AS SafeLowRisk "AAA" AND SOLD TO VICTIMS ALL OVER THE WORLD!

2. An Automated G0LDMAN System intercepts real time order messages and insert GS Trades ahead of others trades at lower price so they can capture the BOUNCE from a Big TRADE. NANOSECOND Manipulation of TRADES! They sit back and watch the Interception and Automatic G0LDMAN Order Inserting Software produce NANOSECOND GAINS far greater than probably even G0LDMAN Dreamed of even a couple years ago!

3. Regarding ST0LEN G0LDMAN Market Manipulation Software the, "Bank (GS) has raised possibility there is danger somebody who knew this program could use it to manipulate markets in unfair ways." PROOF by a G0LMAN Representative in a COURT of LAW! NANOSECOND Manipulation of Markets! Perhaps this is ONE of the MOST AMAZING ADM1SS1ON in a C0URT of LAW by a Wall Street Bank!

4. “PREMED1TATED MANUFACTURED 1NSIDER TRAD1NG”
a. Make SureFailMo rtgageProd uct knowing it will fail
b. Buy Massive A1G CreditDefaultSwaps Betting “SURE FAIL Products” will FAIL!
Make it to fail&bet it will fail: "Manufactu red-Inside r-Trading" 100% Sure BETS!

2 and 3 are Automatic+ILLEGAL and cause America's Markets to be UNINVESTABLE!

These BROKE/BREAK USA LAWS but No prosecution by Justice Department!

[PhilipTaylor]

02:11 AM on 09/02/2009

Laws on books - LACKING IS AN HONEST ADMINISTRATION TO PROSECUTE!

“Misrepresentation” is contract law concept, meaning false statement of fact made by one party to another party, which has effect of inducing that party into a contract. For example, false statements/promises made by seller of goods regarding the quality/nature of the product that the seller has may constitute misrepresentation.

“Insider Trading” is trading of securities by individuals with access to non-public information about product/company. Taking advantage of non-public information by an insider during performance of insider's duties, or in breach of fiduciary duty or relationship of trust/confidence.

[PhilipTaylor]

02:12 AM on 09/02/2009

Has the JUSTICE Department BEEN SHUT DOWN YET? Shutters on the DOORS?

NOTHING of SIGNIFICANCE HAS HAPPENING since H0LDER T00K 0VER! NOTHING Except protect BUSH/CHAINY!

Holder did investigate his own prosecutors and got the Stevens conviction tossed out!

Wake up to $TRILLIONS TAKEN on Wall Street!

Isn't Justice doing the same thing that the SEC did with Madoff - Ignoring the FACTS until it EXP10DES in their F@CE?

And Wall Street Continues to Skim, Scam, Cheat, Automate CR1ME, and DRIVE America into the GROUND!

Why is H0LDER, with all the big promises, ignoring the FACTS?

[bluecollarblogger]

01:06 AM on 09/02/2009

The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life. ~Theodore Roosevelt

Is making a buck at any price worth the cost which is being felt by our society. The prosperity which so few enjoy comared to the suffering of so many.....is it worth it? Have we lost our sense of duty to country, our fellow man, or ourselves. Everything in our society cannot rest on the success of the choses but on the success and benefit of the mass

[mikep]

12:54 AM on 09/02/2009

It looks like China is beginning to move to declare its derivative contracts with US firms null and void. An important step. I have a feeling that they might even get some support from Japan, since the new prime minister there has said that he considers American financial practices "immoral." I think people have finally had enough.

[Katzencats]

12:38 AM on 09/02/2009

Wasn't it the derivatives market that took down the world economies? It shouldn't be regulated, it should be outlawed.

[jeanrenoir]

12:15 AM on 09/02/2009

The Democratic Congress has got to face the fact that, in this area, as in all others, the whole world is constantly watching the sausage get made these days. There are simply too many nonstop media eyes on the prize for Congress to get away with business as usual. They will be held accountable by infuriated tax-payers if they sellout to the bankers who almost destroyed our and the world's economies just last year with their derivative greed.

[themodernleader]

12:14 AM on 09/02/2009

Through policies of favoritism, the financial interests now have the high ground and momentum going forward. Was that the way it was envisioned?
The changes that are in place and the forces going forward show a dominant financial institution eclipising the government and other economic activity. This Administration took the mantle of the corrupt Bush Administration and has accelerated the domination of a few banks and decline of the American economy and political institution. Obama has already done irreparable harm to his promises. His policies are endangering the competence of democracy to survive.

[MikaS]

11:51 PM on 09/01/2009

Let's not just overhaul derivatives, let's get rid of them.

[zelda777]

11:42 PM on 09/01/2009

Let's see...I need a little help with my math with these mind-boggling numbers. Is $592 trillion a little over a half a gazillion...or katrillion...or bazillion??? Ya know, a gazillion here, a katrillion there, pretty soon you're talking about a lot of money.

[RevBookburn]

11:40 PM on 09/01/2009

These people need to shut up. They are the lowest form of life and lucky they're not in prison with Madoff. They have no say.

[hellboundtrain]

11:36 PM on 09/01/2009

Sounds like the Chinese government is making a decision about these ridiculous contracts when it has been reported that state-owned companies may be given the right to walk away from honoring them.

The Chinese are a 1.4 billion people-strong market that should be heeded.

[vippy]

09:55 AM on 09/01/2009

European countries took measures to reign in CEO Pay and addressed the short selling, derivatives, etc. but it looks like our MAFIA is not wanting to do so. Our elected officials are making money off this
as well, they were the ones who removed the rules and regulations, so now they are reluctant to address this. Same goes for the oil prices. We have heard all of the excuses but the right one.
Oil is about the only thing making money and they keeping it so high though it should be at 99 cents
for we are swimming in excesses. Remember this, when you vote next time - absolutely NO INCUMBENTS!

[Steven Duke]

03:16 AM on 09/01/2009

30 years?! It was created in 2000 by Grahm-leech-bliley along with commodities deregulation-ENRON/$140 barrel oil, anybody not shove that down the memory hole yet?

60 minutes re-ran its story on the derivatives market last night, It is a fraud, outlawed in 1907 after that financial collapse.

A derivative is nothing but a side bet or a bet on a bet on a bet etc...And almost the entire market is based on non secured e.g. there is no money to back up the bets-system. That is the 180 billion that AIG payed out to GS, ML, BofA and even foreign banks. The bets were never required to have money to back them up and now the US Taxpayer is making everybody right. WAKE UP!

[dumboldfarmer]

12:51 AM on 09/01/2009

I think I am going to get grant money, do a 500 - 1 leverage buyout of a bank, then have the FDIC fork over another 80% to cover losses and laugh all the way to my new 6 million dollar mansion somewhere safe.
Might work.