Bloomberg: Derivatives Lobby Links With New Democrats to Blunt Obama Plan

Written by admin on October 13th, 2009

Bloomberg reports on the financial industry’s campaign to blunt derivative regulations.

Story here:

Executives and lobbyists in finance, manufacturing, agriculture and other industries had been pressing lawmakers and administration officials for months before McMahon’s fortuitous seating assignment at Federal Hall.

“We’ve seen a steady parade of all of the big dealers, all of the major money-center banks have come through Congress,” Himes said in an interview.

Derivatives Coalition

The House Agriculture Committee approved legislation in February granting the CFTC or SEC oversight of clearinghouses backing credit-default swaps. It also would have allowed those regulators to suspend trading in the $26 trillion market.

“That acted as a catalyst, and we formed a small group of companies that were interested in this issue,” said Dorothy Coleman, vice president of tax and domestic economic policy at the National Association of Manufacturers in Washington.

Momentum continued to build over the next six months as the Obama administration made derivatives reform a key element of its financial regulatory agenda.

The NAM group was joined by members of the U.S. Chamber of Commerce and the Business Roundtable to form the Coalition for Derivatives End-Users. Its 171 members are all non-financial corporations, including brewer MillerCoors LLC, International Business Machines Corp. and tractor-maker Deere & Co.

The Best Government Money Can Buy? is a non partisan documentary film about the links between lobbying and campaign finance.


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