NACBA
01-30-2015, 08:25 AM
(Bloomberg) -- U.S. Senator Elizabeth Warren and Representative Elijah Cummings are asking Wall Street banks how a recent repeal of a Dodd-Frank derivatives provision affects their business, as Democrats try to shine a spotlight on efforts to weaken the financial-regulation law.
The lawmakers sent letters Thursday to the chief executive officers of Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. seeking information on how the change impacts their swaps trading, the size of their derivative books and the value of swaps they would have had to push out if Dodd-Frank hadn’t been altered.
A goal of the repealed provision “was to ensure that taxpayers were not put at risk when large banks or financial entities engaged in risky swaps trades,” the lawmakers wrote. The change Congress approved in December “gutted” a section of Dodd-Frank, they wrote.
http://www.bloomberg.com/news/articles/2015-01-29/warren-cummings-grill-banks-on-change-to-dodd-frank-swaps-rules
The lawmakers sent letters Thursday to the chief executive officers of Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. seeking information on how the change impacts their swaps trading, the size of their derivative books and the value of swaps they would have had to push out if Dodd-Frank hadn’t been altered.
A goal of the repealed provision “was to ensure that taxpayers were not put at risk when large banks or financial entities engaged in risky swaps trades,” the lawmakers wrote. The change Congress approved in December “gutted” a section of Dodd-Frank, they wrote.
http://www.bloomberg.com/news/articles/2015-01-29/warren-cummings-grill-banks-on-change-to-dodd-frank-swaps-rules