Get Ready For Another Derivative Meltdown

Despite gridlock in Washington, the new effort to loosen regulations and water down the 2010 Dodd Frank Act is getting bipartisan support in the lower chamber.

thom-hartmannLess than a week ago, Senator Carl Levin issued a scathing report on the devastation JP Morgan caused with risky multibillion-dollar derivative trades.  Yet, some in Congress are fighting to deregulate Wall Street, and remove oversight on derivative trades between utility companies and banksters.  Levin said, “It is incredible that less than a week after new JPMorgan Whale hearings detailed hoe the bank’s London office piled up risk, hid losses, and dodged regulatory oversight, that some House members are again supporting the weakening of derivative safegaurds.”

And despite gridlock in Washington, the new effort to loosen regulations and water down the 2010 Dodd Frank Act is getting bipartisan support in the lower chamber.  Republican Representatives Patrick Henry and Scott Garrett are backing the measure, and Democratic Rep. Gwen Moore said the plan is only meant to relieve regulatory burdens on companies that do business with big banks.  Another democrat, Representative Jim Himes, even wants to roll-back Dodd Frank, and stick taxpayers with the bill, should the derivative market implode again.

It’s only been five years since the banksters crashed our economy by gambling with derivatives, and the modest legislation we’ve enacted is meant to prevent another economic meltdown.  Representative Alan Grayson, a leading voice for financial reform, criticized his colleagues for considering putting our nation at risk again. He said, “the road to hell is paved with these bills.”

We should be strengthening regulations on Wall Street, not giving banksters another free pass to gamble with our economic future.  Call Congress today and tell them they must stop the next derivatives debacle before it’s too late.

Thom Hartmann
Thom Hartmann is a progressive nationally and internationally syndicated talkshow host (also simulcast as TV in 40 million homes by Dish Network/Free Speech TV), and New York Times bestselling, four-time Project Censored winning author of 24 books in print in 17 languages on five continents. Follow Thom on Twitter @Thom_Hartmann

LISTEN: The Weekend Ahead – December 20-22, 2014

The Day Ahead Logo

New E.U. sanctions against Crimea go into effect, Liberia holds elections and President Obama hits the Sunday morning talk show circuit.

LISTEN: The World in 2:00 – December 19, 2014

The World in 2:00 continents logo

President Obama disagrees with Sony’s decision to scrap release of “The Interview,” and Ban Ki-moon surveys Ebola-affected West Africa.

Obama: Benefits Of Keystone Would Be Minimal

Obama

“There is very little impact, nominal impact, on U.S. gas prices, what the average American consumer cares about,” Obama said.

Pentagon: Hagel Briefed Friday On Army’s Report On Sgt. Bowe Bergdahl

Bergdahl, who was held in Afghanistan for five years as prisoner of a pro-Taliban group, was released in a prisoner exchange with five Taliban commanders previously held at the Guantanamo Bay detention facility in May.

Obama: Sony ‘Made A Mistake’ In Pulling Controversial Film

Obama

“We cannot have a society in which some dictator some place can impose censorship here in the United States,” Obama said.

Interview: The Holiday Season And Donating To The Wounded Warrior Project

Wounded Warrior Project CEO Steve Nardizzi is interviewed by TRNS.