Why Elizabeth Warren Makes Bankers So Uneasy, and So Quiet

[n2doc]

The rollback of financial regulation is stalled. Income inequality is a campaign issue. Americans are still angry about the financial crisis. Things aren’t shaping up the way the big banks expected, and an important reason is one laser-focused senator from Massachusetts.

by Katrina Brooker

Let’s assume that when he woke up on the morning of Dec. 12, Michael Corbat, CEO of Citigroup, was feeling pretty good. The day before, the House of Representatives had passed a bill that would save his bank and others lots of money and headaches.

The trouble was, Elizabeth Warren, the senior senator from Massachusetts, was getting ready to speak on the Senate floor. She had his bank on her mind.

What Warren wanted to talk about was an item tucked into page 615 of a 1,603-page spending package: the repeal of section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Known as the swaps push-out rule, section 716 required banks to set up separate subsidiaries, not backed by the government, to trade certain derivatives. If the rule stood, it would generate huge administrative costs for the big banks.

Citi had fought hard on this. The bank’s lobbyists had worked on lawmakers and helped draft language for the repeal. Getting it into a big spending package Congress was sure to pass was a coup. In the ongoing wars between Wall Street and the forces of government regulation, this repeal was a big win for the banks.

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http://www.bloomberg.com/news/articles/2015-05-05/why-elizabeth-warren-makes-wall-street-tremble

[djean111]

1. And Obama had Jamie Dimon whip Dem votes FOR that bill. 'nuff said.

[FlatBaroque]

2. To me, that was the symbolic nadir of this presidency

I don't think he got lower than that, yet.

[Yo_Mama_Been_Loggin]

3. These assholes still want us to bail them out

If they want to trade in risky securities like derivatives they should not expect the taxpayer to back them up.