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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Metacomet who wrote (90615)

5/25/2012 6:05:50 PM

From: Cogito Ergo Sum

Read Replies (1) | Respond to of 217901

From: russet	5/25/2012 6:04:23 PM
	of 3217

Wall Street Journal says Comex has been classified as 'too big to fail' A Mess the 45th President Will Inherit Taxpayers Now Stand Behind Derivatives Clearinghouses From the Wall Street Journal Thursday, May 24, 2012 http://online.wsj.com/article/SB1000142405270230484090457742239316410627... President Obama's standard gripe is that the economy has performed so poorly during his term because of the financial crisis he inherited from George W. Bush. But this week it is Mr. Obama who has bequeathed to his successors a landmark in financial regulation. It is bound to haunt them, though not as much as it will haunt taxpayers. J.P. Morgan's recent trading loss and the resulting Washington blather about tighter regulation have grabbed headlines. Little noticed is that on Tuesday Team Obama took its first formal steps toward putting taxpayers behind Wall Street derivatives trading -- not behind banks that might make mistakes in derivatives markets, but behind the trading itself. Yes, the same crew that rails against the dangers of derivatives is quietly positioning these financial instruments directly above the taxpayer safety net. As we noted in May 2010, the authority for this regulatory achievement was inserted into Congress's pending financial reform bill by then-Senator Chris Dodd. Two months later, the legislation was re-named Dodd-Frank and signed into law by Mr. Obama. One part of the law forces much of the derivatives market into clearinghouses that stand behind every trade. Mr. Dodd's pet provision creates a mechanism for bailing out these clearinghouses when they run into trouble. Specifically, the law authorizes the Federal Reserve to provide "discount and borrowing privileges" to clearinghouses in emergencies. Traditionally the ability to borrow from the Fed's discount window was reserved for banks, but the new law made clear that a clearinghouse receiving assistance was not required to "be or become a bank or bank holding company." To get help, they only needed to be deemed "systemically important" by the new Financial Stability Oversight Council chaired by the Treasury Secretary. Last year regulators finalized rules for how they would use this new power. On Tuesday, they began using it. The Financial Stability Oversight Council secretly voted to proceed toward inducting several derivatives clearinghouses into the too-big-to-fail club. After further review, regulators will make final designations, probably later this year, and will announce publicly the names of institutions deemed systemically important. We're told that the clearinghouses of Chicago's CME Group and Atlanta-based Intercontinental Exchange were voted systemic this week, and rumor has it that the council may even designate London-based LCH.Clearnet as critical to the U.S. financial system. U.S. taxpayers thinking that they couldn't possibly be forced to stand behind overseas derivatives trading will not be comforted by remarks from Commodity Futures Trading Commission Chairman Gary Gensler. On Monday he emphasized his determination to extend Dodd-Frank derivatives regulation to overseas markets when subsidiaries of U.S. firms are involved. Readers know Mr. Gensler as the chief regulator of MF Global, which was run into bankruptcy by his old Beltway and Goldman Sachs pal Jon Corzine. An estimated $1.6 billion is still missing from MF Global customer accounts. What an amazing feat Mr. Gensler will have performed if, through his agency's oversight, he can manage to have U.S. customers eat the cost of Mr. Corzine's bets on foreign debt and have U.S. taxpayers underwrite bets in foreign derivatives trading. If there's one truth we've learned about government financial backstops, it's that sooner or later they will be used. So eventually taxpayers will have to bail out one derivatives clearinghouse or another. It promises to be quite a mess. And if the 45th president spends his first term whining about his predecessor's mistakes, he'll have a point.

To: Metacomet who wrote (90615)	5/26/2012 2:46:28 AM
From: dalroi	10 Recommendations Read Replies (2) \| Respond to of 217901

Its clear you dont live in acountry where 1/ taxationrules changes like in mine taxation of cars changed 3 times in as many months How tf should i then be able to plan my bussiness 2/ taxation rules now classify as fraude what was generaly accepted as normal bussiness done by evryone low to high 3/ retroactive changing taxation , one should be very very carefull with that when it concerns the fb guy most peeps say well its a rich B so probably he deserves it , it could however become a lot closer to your bed lets say you live in california and wanna go somewhere else Do you think california has a right ( after you payed all your taxes to it) to charge you for the next 10 years and prohibit to reenter it 4/ would you stay with your bank if you new they we bankrupt even after you payed all your due to them ? 5/ imo once one payed all the needed taxes one is a free man and free to go where one whishes ITS UP TO THE GOVERNEMENTS TO be competitive and so attract the smartest and brightest to get ahead of the game ELSE you'll end up with a totalitarian state (goodluck with it , we have seen enuff in europe to what that leads) just go to german concentration camps , soviet goulags , rememeber the pogroms etc...... anyway all those laws are just a foot in the door once it is pried open resistance is fultile it allways becomes worse