FINREG: Scott Brown had it right, Barney Frank is already gutting the derivatives regs…
Knew this was coming, and so did Scott Brown, thus his cloture vote to end debate. The GOP pundits (I mean you AllahPundit!) who were bashing him will owe him an apology when the Cmte releases the final bill and it has no teeth on derivatives..
Anywho, Scott Brown voted for cloture b/c Reid and Frank TOLD HIM the derivatives killing language would be stripped, and it will.
House Financial Services Committee Chairman Barney Frank (D., Mass.) on Tuesday said the White House’s proposal to stop banks from certain risky trading practices would “very likely” be in the final financial overhaul, but he said a separate provision to force banks to spin off their derivatives businesses “goes too far.”..
…Mr. Frank’s opposition to the derivatives spin-off proposal, which has been championed by Senate Agriculture Committee Chairman Blanche Lincoln (D., Ark.), raises the chances that this provision will likely be altered or stripped out completely because Mr. Frank’s comments on it were pointed.
“Banks ought to be able to hedge their own risks,” Mr. Frank said. He said banks would be prohibited from overly risky derivatives activities by the Volcker Rule and that the separate provision wouldn’t be necessary.
“I don’t see the need for a separate rule regarding derivatives because the restriction on banks engaging in proprietary activities would apply to derivatives as well as everything else,” Mr. Frank said.
He said banks would be able to do derivatives under the rules established by the bill “for their own commercial risk or their customers, but they will not be able to run separate profit centers where they trade them.”…