Is the Fix in on Derivatives?
It looks like the fix is in.
It's being reported that Democrats are plotting to remove Blanche Lincoln’s crucial provision to basically outlaw the trading by banks of naked derivatives - what Warren Buffett called "financial weapons of mass destruction" that have brought the world to the brink of disaster while making a few dozen banksters into billionaires - from the financial reform after her primary on Tuesday.
1030 commercial banks in the US trade derivatives but 5 banks, JP Morgan Chase, Citigroup, Goldman Sachs, Bank of America and Wells Fargo control 97% of all the derivitive trades.
Those 5 banks hold assets of more than 60% of US GDP, 8.6 trillion dollars. That's not just too big to fail, that's monopoly capitalism and monopolies like this lock out competition and destroy markets.
Robert Reich calls her provision the "biggest battle of bank reform." This battle is about if firms trading derivatives will continue to have their assets insured by the Fed.
Under Lincoln’s proposal, the traditional commercial banking business would be insured by taxpayers while the more risky derivatives business would be spun off. Watch what happens to Blanche Lincoln's amendment after the Tuesday primary.
If it suddenly vanishes then the whole thing was just a very cynical kabuki theatre perpetrated on the American people by the Democrats with the wink-wink-nod-nod of the bankster owned Republicans.