Friday, May 14, 2010
Did you expect anything different?
Bernanke, Siding With Banks, Opposes Plan To Spin Off Swaps Desks
Yesterday, in a letter to Chris Dodd, the chairman of the Senate Banking Committee, Federal Reserve chief Ben Bernanke reiterated his opposition to a measure that may be the financial reform proposal most feared among the large banks.
The provison put forth by Sen. Blanche Lincoln (D - Ark.) would require that banks spin off large portions of their derivatives trading operations. Five banks dominate the derivatives market, holding "97 percent of the total $212.8 trillion worth of derivatives contracts held by U.S. commercial banks," Reuters notes.
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