http://market-ticker.denninger.net/archives/2232-Derivatives-To-Be-Spun-Off.html
Am I dreaming?
In an agreement struck Sunday, Banking Committee Chairman Chris Dodd agreed to replace his proposed restrictions on derivatives with those of the Senate Agriculture Committee, chaired by Arkansas Democrat Blanche Lincoln.
If you remember, I wrote about this a few days ago:
Along with forcing commercial banks to spin off their swaps dealers to a different corporate entity, Lincoln’s derivatives legislation would bar dealers, exchanges, clearinghouses and other swaps-market participants from being able to take advantage of emergency lending from the Fed, according to the aide.
Ding ding ding ding.
Give this lady a cigar!
Look folks, we can't fix what's broken if we don't do this.
Let's boil it all down to the simple when it comes to banks and their operations:
It is essentially impossible for us to have meaningful reform if institutions with access to government backstops and privileges, including but not limited to the ability to fractionally reserve, access to The Fed window and FDIC insurance, are able to trade in the derivatives business.
