DEAD CAT BOUNCE: BEATRICE & RAMONA TALK TAO OF DIGITAL DERIVATIVES FRAUD
|
GARY GENSLER |
Closing loophole could cost US banks millions
MINNIE ~'DEAD CAT BOUNCE'? BEANIE CHINA'S BANKS STOPPED LENDING AND THIS IS A WARNING SIGNAL, TOO, THE WORLD DECIDES >>Figures from the US Treasury show that US financial institutions
reported derivatives trading revenues of US$4.4bn in the fourth quarter
of 2012, a 73% increase on the previous year>>These revenues were
dominated by JP Morgan, Bank of America Merrill Lynch, Citigroup and
Goldman Sachs. And analysts estimate that US banks route around 50% of
their derivatives trades overseas, which would mean a sea change for
their operations, not to mention their bottom lines, if the exemption
was allowed to die.
Ticking clock
The exemption was in fact originally designed
to give US banks more time to prepare for the changes under Dodd-Frank.
But for all parties concerned, time is now quickly running out >> Time
is also running out on Gensler himself >> His term officially expired in
April 2012, but as no successor has been named he is entitled to stay
until the end of the year >> There are suggestions that he could be
replaced before July 12, but US lawyers say they doubt this is
logistically feasible, because a new chairperson would have to be
approved by the US Congress – not exactly a quick-moving legislative
body >> In the meantime, under the CFTC’s structure, Gensler alone
sets the organisation’s agenda and only he has the power to call for a
vote to extend the exemption >> Three of the CFTC’s five board members
would need to vote for approval >> But Gensler has every right to do
nothing and permit the exemption to expire >> “It’s the chairman’s
role to set the agenda >> To approve a measure it would have to be a
consensus of the commission,” said Stephen Adamske, a CFTC spokesman.
“Currently there is no vote scheduled for an extension.”
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