House Moves To Gut Derivatives Regulations Again
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The Committee on Financial Services will meet in open session to mark up the following measures:
- H.R. 701, to amend a provision of the Securities Act of 1933 directing the Securities and Exchange Commission to add a particular class of securities to those exempted under such Act to provide a deadline for such action
- H.R. 801, the “Holding Company Registration Threshold Equalization Act of 2013″
- H.R. 742, the “Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013″
- H.R. 1341, the “Financial Competitive Act of 2013″
- H.R. 634, the “Business Risk Mitigation and Price Stabilization Act of 2013″
- H.R. 677, the “Inter-Affiliate Swap Clarification Act”
- H.R. 992, the “Swaps Regulatory Improvement Act”
- H.R. 1256, the “Swap Jurisdiction Certainty Act”
- H.R. 1062, the “SEC Regulatory Accountability Act”
Even the Wall Street friendly White House opposes these changes as Treasury Secretary and Citigroup alumnus Jack Lew wrote a letter to the committee opposing the deregulation effort.
Jack Lew, the new Treasury secretary, made the recommendations in letters sent to the House financial services committee ahead of a scheduled Tuesday vote on the five bipartisan bills. Versions of some of the measures have been approved by the House in previous years, though none have passed the Senate.
Lew’s letters to Rep. Jeb Hensarling (R-Texas), committee chairman, and Rep. Maxine Waters (D-Calif.), ranking member, signal that the Obama administration intends to continue fighting efforts to amend the 2010 overhaul of U.S. financial regulation known as the Dodd-Frank Wall Street Reform Act.
“The derivatives provisions in the Wall Street Reform Act constitute an important part of the reforms being put in place to strengthen our financial system by improving transparency and reducing risks for market participants,” Lew said. “These reforms should not be weakened or repealed.”
Congress has systematically underfunded the Wall Street regulatory agencies and with these bills the regulators’ hands will be tied returning America to the pre-2008 system. More or less guaranteeing a crash. Yes, Wall Street and some members of Congress are this irresponsible.