The Democrats passed Dodd-Frank in response to the meltdown of 2008. There wasn’t much in the way of free-market principles in this bill, but they did make an attempt to keep government from bailing out Wall Street. The GOP House of Representatives just voted to overturn part of the bill, and reports are that Citigroup wrote the bill for them! In fact it was introduced by Il. Rep. Randy Hultgren.
I’m sure the GOP has plenty of double-speak ready, maybe we can hear some when they campaign for re-election. Campaign contributions appear to be much more important than fiscal responsibility.
Here’s a description of the bill:
3/6/2013–Introduced.
Swaps Regulatory Improvement Act – Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to extend the exemption from the prohibition against federal government assistance to (bailouts of) swaps entities to any major swap participant or major security-based swap participant that is a U.S. uninsured branch or agency of a foreign bank.
Declares the prohibition against federal government bailouts of swaps entities inapplicable to:
(1) a foreign banking organization supervised by the Federal Reserve; and
(2) an insured depository institution or a U.S. uninsured branch or agency of a foreign bank that limits its swap and security-based swap activities to hedging and similar risk mitigating activities (as under current law), non-structured finance swap activities, and certain structured finance swap activities.
Repeals the exemption from the prohibition for any insured depository institution that limits its swap and security-based swap activities to acting as a swaps entity for:
(1) swaps or security-based swaps involving rates or reference assets that are permissible for investment by a national bank; or
(2) credit default swaps, including those referencing the credit risk of asset-backed securities unless they are cleared by a derivatives clearing organization or a clearing agency registered, or exempt from registration, under the Commodity Exchange Act or the Securities Exchange Act.
This is why both Democrats and Republicans are jumping ship and joining the Libertarian Party. The LP is growing in leaps and bounds because they no longer trust the “duopoly”. People are sick of party bosses and lobbyists running our country.
This is why both Democrats and Republicans are jumping ship and joining the Libertarian Party. The LP is growing in leaps and bounds because they no longer trust the “duopoly”. People are sick of party bosses and lobbyists running our country.