The CFTC, which is facing snipers all around as it tries to do what our Congress (don’t get me started) wants, has just issued new regulations for “swap data repositories” as the Dodd-Frank Act requires. Nothing exceptional here, except that enforcement will be deferred until the agency finalizes what is a “swap.” That is the heart and soul of the whole D-F regime.
Imagine that we were mandated to follow a particular religion but not until the word “god” is defined. (more…)
As we’ve said previously, Dodd-Frank is now one year old. Unfortunately, as we’ve also discussed, more and more of its provisions are being pushed further back in their implementation. The latest hold-up is the establishment of the Consumer Protection Bureau, that while it has opened its doors, still does not have a director. Others are starting to notice as well. Last night, Jon Stewart did a segment on The Daily Show detailing the progress the law has made over the last year. Hope you enjoy it in all its satirical goodness. (more…)
Congress has codified in the Dodd-Frank Act the argument by America’s Fortune 500 that they cannot “afford” to comply with exchange/clearing margins. Such a regime, they say, would constrain their growth and development (jobs!), not to mention their Good Works (puppy shelters?). And so, industrial and commercial giants will be able to remain largely outside the remit of federal oversight by continuing to hedge with swaps on a purely private basis. We are talking here about many if not most of the trades that existed prior to the recent financial crisis. (more…)
When the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law last month, we ran a poll question on our website asking whether it: a) ends “too big to fail,” b) doesn’t end “too big to fail,” or c) is a full employment act for lawyers. Most of those who responded chose option c, and from the looks of things at the Futures Industry Association‘s financial reform forum in Chicago yesterday, they were right. The forum was packed with lawyers who will be very busy over the next year as new rules stemming from the legislation are put in place. Their discussion on the new rules was complicated and mind-numbing, and it seemed like the only certainty at this point is that there are many UNcertainties. (more…)
