Post by unlawflcombatnt on Nov 1, 2013 11:27:58 GMT -6
The House just passed a bill by an overwhelming Republican majority that seemingly repeals some of the anti-bailout language in the Dodd-Frank bill. According some reports, it was essentially written by the Banks themselves.
Though the 1st half of the bill's summary sounds egregiously pro-bank, the 2nd part is a little confusing (at least to me), stating "Repeals the exemption from the prohibition..."
Below is a Summary from Gov Track
Below the summary is the vote tally.
www.govtrack.us/congress/bills/113/hr992#summary/libraryofcongress
"Swaps Regulatory Improvement Act - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to extend the exemption from the prohibition against federal government government assistance to (bailouts of) swaps entities to any major swap participant or major security-based swap participant that is a U.S. uninsured branch or agency of a foreign bank.
Declares the prohibition against federal government bailouts of swaps entities inapplicable to:
(1) a foreign banking organization supervised by the Federal Reserve; and
(2) an insured depository institution or a U.S. uninsured branch or agency of a foreign bank that limits its swap and security-based swap activities to hedging and similar risk mitigating activities (as under current law), non-structured finance swap activities, and certain structured finance swap activities.
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Repeals the exemption from the prohibition for any insured depository institution that limits its swap and security-based swap activities to acting as a swaps entity for:
(1) swaps or security-based swaps involving rates or reference assets that are permissible for investment by a national bank; or
(2) credit default swaps, including those referencing the credit risk of asset-backed securities unless they are cleared by a derivatives clearing organization or a clearing agency registered, or exempt from registration, under the Commodity Exchange Act or the Securities Exchange Act."
www.govtrack.us/congress/votes/113-2013/h569
Though the 1st half of the bill's summary sounds egregiously pro-bank, the 2nd part is a little confusing (at least to me), stating "Repeals the exemption from the prohibition..."
Below is a Summary from Gov Track
Below the summary is the vote tally.
www.govtrack.us/congress/bills/113/hr992#summary/libraryofcongress
"Swaps Regulatory Improvement Act - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to extend the exemption from the prohibition against federal government government assistance to (bailouts of) swaps entities to any major swap participant or major security-based swap participant that is a U.S. uninsured branch or agency of a foreign bank.
Declares the prohibition against federal government bailouts of swaps entities inapplicable to:
(1) a foreign banking organization supervised by the Federal Reserve; and
(2) an insured depository institution or a U.S. uninsured branch or agency of a foreign bank that limits its swap and security-based swap activities to hedging and similar risk mitigating activities (as under current law), non-structured finance swap activities, and certain structured finance swap activities.
----------------------------
Repeals the exemption from the prohibition for any insured depository institution that limits its swap and security-based swap activities to acting as a swaps entity for:
(1) swaps or security-based swaps involving rates or reference assets that are permissible for investment by a national bank; or
(2) credit default swaps, including those referencing the credit risk of asset-backed securities unless they are cleared by a derivatives clearing organization or a clearing agency registered, or exempt from registration, under the Commodity Exchange Act or the Securities Exchange Act."
www.govtrack.us/congress/votes/113-2013/h569