Even more bad news on Financial Reform. The main players in the negotiations between the House and Senate versions are Chris Dodd, Barney Frank and Timothy Geithner.
The Wall Street Journal:
As a result, people who know them say, they are likely to show willingness to negotiate on parts of the bill they don't view as core, while being intractable on pieces they view as elemental.
That could mean easing provisions with strict limits on derivatives trading, proposed restrictions on fees banks charge retailers and even agreeing to allow auto dealers to be exempt from new lending rules.
Nice huh? Negotiations are supposed to be between the two houses of Congress only. The entire list of conferees is front loaded with corporate representatives. Not a single Congressional representative who was pushing for real reforms, such as the Volcker rule, Glass-Steagall, stronger derivatives reform was chosen as a conferee.
"What we're focused on is making sure that in the conference process the president's core objectives are met, and there are going to be other things that are done in that process along the way that are not part of those core sets of objectives, and we think we can work those out," said Assistant Treasury Secretary Michael Barr, a close aide to Mr. Geithner.
Banks lobbying to remove another reform out of bill
This time it's a type of CDO, TruPS:
This is just unbelievable. It's so clear these various derivatives are the things which created systemic risk, contagion within the financial sector in the first place as well as enabled banks to practice unsound banking....
yet here we are, with the very swiss cheese, weak Financial Reform bill going to be ripped further asunder after it passed and it appears derivatives are at the top of that list.