Wednesday, April 21, 2010

Obama in New York on Thursday to revise financial regulation

Press and President Barrack Obama in New York on Thursday to revise financial regulation, the possibility for a break on Wall Street for the most difficult part of the proposed regulation since the Great Depression.

A Senate committee approved Wednesday, the last part of sweeping legislation - a new and strict supervision of the disturbance and the unregulated market for complex financial derivatives. This is one of three important provisions that interfere with the Wall Street Journal.

Also drawing fire from business group’s large financial institutions and proposed by the Agency in order to protect the consumer in the financial markets and fund $ 50 billion, paid in advance by the industry to help cover the cost of government should confiscate and destroy large financial companies, because companies will endanger future economic failures.

Senate Agriculture approved the repair at the White House and Democratic allies are prepared to place an important voice in a few days at the whole package of reforms to be debated in the full Senate. House passed legislation in December of the same.

Obama has tried to ratchet public opinion that supports reining in Wall Street those financial companies to recover more quickly than a deep recession in the country. But reflecting optimism on Capitol Hill in the bipartisan agreement, the presidential race to his rhetoric of Wall Street on Wednesday, anti.

"We must have a developed financial sector, Obama said in an interview on CNBC." But we also have a basic code of the road in place to ensure that investors, consumers, shareholders, global protection against abuse. “

However, Wall Street actively fought against the law. Here is a look at three main areas of dispute.

Tough derivative control

Derivatives get their name because they get value from something else, like interest rates, exchange rates, mortgage or corn or oil prices.

Credit default swaps and other derivatives are complex business contracts, which usually serve as insurance against future market conditions. An airline is concerned that fuel prices and worries about rising interest rates banks could buy derivatives to protect against these events.

However, derivatives used to bet on market performance or the assets, and that's where the violation occurred almost fell of the world economy. Proponents said the tough new rules that this transaction is a game with high stakes on the black market, which, as a major financial casino, which is not regulated, are active.

Derivatives are tools that a business was born in 2000, when Congress has been released with the law, mostly from federal oversight. Explode with the increase in the property market in the use of derivatives, from about 95 billion U.S. dollars in 2000 to 600 billion U.S. dollars this year.

If the housing bubbles, mortgage-linked derivatives market appears to him. Among Wall Street firms American International Group Inc., the rescue operation because they can not be billions of dollars of credit default swaps would have been written for mortgage insurance in connection with investments obsolete.

In addition, the regulator is not known, widespread exposure on derivatives from AIG and other companies. Although some derivatives that are traded on stock exchanges, usually voluntary, at least, without the price and trading volume in the dark.

"We must improve the transparency and accountability in the marketplace," said President of the Senate Agriculture Committee Blanche Lincoln (D-Ark.) shortly before his panel votes 13-8 to approve a new regulation derivative. Committee on Agriculture has oversight for derivatives play an important role in agriculture.

Repair Act would require around 90% of all derivatives traded on regulated markets and central clearing organization. This process ensures there are enough reserves to handle the money and give details about the contract and the price, hence more difficult to defraud investors.

But believe Wall Street firms and businesses that proposed restrictions, which contains a narrow exception to strong and will only increase the price of the product, at a cost to consumers. Rules can also help to promote the derivatives business in countries with less regulation.

Banks like Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp., a large company and the derivative will be a big loser if the new rules come into force. The Senate proposal to the bank to spin off derivative activities for children.

These and other companies involved in the derivatives market, which facilitates further restrictions, and a lot of people. However, last week Obama said he would veto if it is not difficult to review derivative.

Sub-prime crisis in the majority of bank loans and mortgage-brokers from steering people at risk in the belief that house prices will continue to rise. They mortgages - including supreme, interest-only loans and variable rate - Taking advantage of consumers who do not understand the product or they take risks.

0 comments:

Post a Comment

There was an error in this gadget

TAG

University Local Class After Students Schools Support Universities Those Been Year It’s They Died Project Student History Developed Show Tech More Dr People Prints Number Breaking April Silence Classes Art Making Through Across Into High Future One National Massacre My He Organized Fun French Over Do Tattoo His Pearl Virginia Harassment Like Read Japanese Part Safer Colleges First Every Volunteers End Efforts Tattoos News Day Not Shooting Just Bodies Said Country Skin ments Other Lakra Actionabs news anjali rao arabic backorder domain name best urdu poetry boom oil spill casey anthony citizen judge system clean oil spill clean up oil clean up oil spills cleaning oil spill cleaning oil spills cleaning up oil spill asia talk back story black america breaking news carol costello clark howard crime election en espanol espanol gps hln home page larryking nacygrace nancy grace newsroom prime news robin robin meade showbiz themoment daily news desktop news en espan en espanol en vivo espanol europe headline news headline news live headlines heroes inside africa international news jeanne moos larry king last news latest news live live broadcast live feed live news live stream live tv live tv news live video money news mortgage news new news news africa news asia news break news channel news headlines news news news now news online news ticker news today news update news video newscaster newscasters news room on line online prime news radio richard quest robin and pany saturday morning situation room studio tour talkasia team television news tv news video videos weather world news crude oil spills david diesel fuel spill exxon oil spill exxon oil spill clean up fuel oil spill fuel oil spills heating oil spill heating oil spills how old is larry king how to clean up an oil spill hurricane effects on environment hurricane katrina impacts of hurricanes larry king age larry king bio larry king biography larry king jewish larry king jr larry king marriages larry king wikipedia mary snow nancy grace nancy grace news nancy grace on new carissa news from oil absorbent oil absorbent pads oil absorbents oil boom oil booms oil cleanup oil disposal oil pollution oil pollution spill oil recycling oil skimmer oil skimmers oil spill oil spill booms oil spill clean up oil spill clean up methods oil spill cleanup oil spill containment oil spill control oil spill detection oil spill dispersants oil spill effects oil spill equipment oil spill kits oil spill management oil spill remediation oil spill response oil spill solutions oil spillage oil spills recent news red hat web server results of hurricanes search news security for linux spill spill absorbent spill berm spill berms spill cleanup spill control spill control products spill kits spill response equipment spills steven pozycki tanker oil spill tanker oil spills tv urdu poetry urdu poetry books watch live watch news live water pollution oil live robinNews Show Square Labels First Celtics Rondo Spills National Tv Second Do University Pierce Basketball Only Part Press Am Head Play Larry Boston Other Cavs Points Team He Up Season Not Guard Ap Researchers Coach Connecticut Grace Work Including Jim Live Times Shahzad Me Pakistan Spill Video King Nancy Game James More History Said Official They We Bomb Breaking Taliban Calhoun Clean Base Been Friday People Lebron Police Years Associated May Oil Car Number Comments New

  © by Ourblogtemplates.com 2008

Back to TOP