Lincoln Wall Street bill tacks left
By: John Bresnahan and Carrie Budoff Brown
Politico.com
April 13, 2010
A new proposal by Senate Agriculture Committee Chairwoman Blanche Lincoln would require sweeping changes to the $450 trillion derivatives market, including forcing big banks to spin off “swaps desks” that handle the complex financial instruments — a more aggressive approach than either the White House or other congressional committees have advocated so far, according to the Arkansas Democrat and her aides.
Lincoln’s plan is likely to burnish her standing with progressive groups inside the Democratic Party ahead of her May 18 Senate primary, where she is facing a challenger from the left. Lincoln drew fire from liberals in her party for opposing the public health insurance option in the recent health care reform bill.
Lincoln’s plan is certain to evoke widespread opposition from Wall Street and the banking industry. For instance, her provision to move swaps desks out of banks — what her aides have dubbed the “too big to fail” language — could cost major banks billions of dollars of revenues reaped annually from such transactions.
Lincoln is planning to formally introduce her legislation as early as Thursday, her staff said. Her bill focuses on tighter regulation of the markets for derivatives — which were at the heart of the 2008 global meltdown but have been largely unregulated up until now.
(More here.)
Politico.com
April 13, 2010
A new proposal by Senate Agriculture Committee Chairwoman Blanche Lincoln would require sweeping changes to the $450 trillion derivatives market, including forcing big banks to spin off “swaps desks” that handle the complex financial instruments — a more aggressive approach than either the White House or other congressional committees have advocated so far, according to the Arkansas Democrat and her aides.
Lincoln’s plan is likely to burnish her standing with progressive groups inside the Democratic Party ahead of her May 18 Senate primary, where she is facing a challenger from the left. Lincoln drew fire from liberals in her party for opposing the public health insurance option in the recent health care reform bill.
Lincoln’s plan is certain to evoke widespread opposition from Wall Street and the banking industry. For instance, her provision to move swaps desks out of banks — what her aides have dubbed the “too big to fail” language — could cost major banks billions of dollars of revenues reaped annually from such transactions.
Lincoln is planning to formally introduce her legislation as early as Thursday, her staff said. Her bill focuses on tighter regulation of the markets for derivatives — which were at the heart of the 2008 global meltdown but have been largely unregulated up until now.
(More here.)
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