The Derivative Project

Excessive Regulatory Costs to Taxpayers

Congress Must Exercise Fairness in SEC Mandated Cost-Benefit Analysis

“The House Financial Services passed on February 17, 2012 the SEC Regulatory Accountability Act, H.R. 2308, which requires the Securities and Exchange Commission, in accordance with President Barack Obama’s executive order, to conduct robust cost-benefit analysis on each new rule-making.” This bill is summarized in this article in The Derivative…

The Derivative Project Announces Two New Entrants to our Wall of Shame: SIFMA and ISDA

It was announced this afternoon, that Wall Street is suing the regulators over the position limits for speculation.  Here is a link to the article in the New York Times.  The article states: “But in a complaint filed in federal court in the District of Columbia, Sifma and ISDA argued…

If Congress Allows Weaker Derivative Rules, What Protections Must Congress Provide Retirement Investors?

The New York Times reported earlier this morning that it appears our regulators are going to ease up on the Dodd-Frank OTC derivatives rules.  The downside to this is banks will be ever more encouraged to look for the short – term speculative trading profits, in lieu of investing capital…

Tucked on Yesterday’s Back Page of WSJ is The Issue for Congress to Investigate

The Derivative Project has long been a proponent of banning naked credit default swaps.  Angela Merkel of Germany was the first major economy to do so.  China and India, learning from the shocking failures of the mature economies’ derivative dabbling, has also banned them. The Wall Street Journal describes today…

“My Farmers are Beginning to Think this Tool is a speculative vehicle…”

At the CFTC Agricultural Advisory Committee meeting last Thursday morning, an agricultural advisory participant stated to the Committee, including Chair of the CFTC Gary Gensler, “My farmers are beginning to think this tool is a speculative vehicle–it really is a struggle.” The first point of discussion at the CFTC meeting…

Part II “The Sokol Affair”: Mr. Sokol’s Lobbying to Make Taxpayers Foot the Bill on Berkshire’s Derivative Speculation

Part II on the Sokol “Affair” and Dodd Frank Derivative Reform: Here is A Summary of Mr. Sokol’s Derivative Speculation Lobbying Efforts and Congress Granting Him and Berkshire the Exception that Puts Taxpayers at Risk Mr. Sokol was appointed by Warren Buffett to ensure Berkshire’s $60 billion in speculative derivative…

Why the Sokol “Affair” is the Game Changer in Dodd Frank Derivatives Regulation

The Simple Story,  on how these markets use to operate, when societal needs in capital markets were placed above personal greed. In the “olden days” Wall Street actually talked about banks’ societal and capital role. The Simple Story was a speech given in February 2010 to a group of women…

Attention House Financial Services: What Hasn’t Been Highlighted for You In the FCIC Report?

Page 350 of the Financial Crisis Inquiry Report, published January 2011 states: “On Tuesday morning, the Fed put a number on the table:  it would loan $85 billion so that AIG could meet its immediate obligations….”   “The Fed stated a “disorderly failure of AIG could add to already significant…