http://finance.yahoo.com/news/Obama-Consumers-lose-if-apf-1043447495.html?x=0&sec=topStories&pos=2&asset=&ccode=
Neither party is looking out for you.
Congress exempts, on both a state, and a federal level, any type of regulation for trading derivative because the people trading them might not like it and leave, and that would take away a competitive edge.
So the big car wreck happen because boys will be boys and don't always know their own limitations or at least that's what they told us was the reason for the 2008 crash anyway. ( I have serious doubts, about the "intent" of those "boys").
So congress hims & haws around and coughs up a package that has a special condition for the good ole "boys", to be able to by pass the rules.
Because what ever Wall Street wants Wall Street get, courtesy of our Congress, no matter what the consequences are, to Main Street.
President Barack Obama says consumers would lose if Republicans regain power in Congress and try to roll back his hard-won Wall Street overhaul.
He says the GOP's promised repeal of the law would mean the return of a financial system whose near-collapse led to the worst recession since the Depression.
"Without sound oversight and commonsense protections for consumers, the whole economy is put in jeopardy," Obama said Saturday in his weekly radio and Internet address.
http://works.bepress.com/cgi/viewcontent.cgi?article=1010&context=willa_gibson
This paper discusses the efficiency of proposed Congressional legislation to regulate the Over-the-Counter (OTC) derivatives market in light of the provision in the legislation that effectively exempts customized OTC derivatives contracts from clearing requirements and exchange trading. The exemption allows OTC derivatives dealers trading customized contracts to continue trading in the same opaque markets in which they engaged in rent seeking behavior that almost led to the collapse of the financial markets. The manuscript discusses why Congress has proposed these exemptions, why the exemption creates economic inefficiencies
Systemic Risk Posed by OTC Derivates Trading
OTC derivatives trades were largely exempt from state and federal regulation in 2000 by Congress’ enactment of the Commodities Futures Modernization Act of 2000.11 Congress exempted OTC derivatives from regulation because it was concerned that regulation of the market would cause OTC derivatives business to migrate to foreign markets with less regulation causing the U.S. to lose their competitive position. 12 Yet, many have pointed to Congress’ decision in 2000 to exempt such transactions from regulation as a significant factor contributing to the Great Recession of 2008
