GOP senator joins foes of Wall Street provision in spending bill

The Hill ^ | 12/11/2014 | Peter Schroeder

[wideawake]

Your use of logical fallacies in post #12 (which I pointed out in post #15),

There was no fallacy, and you were unable to identify any.

plus your use of Ad Hominem here, shows that you are a pro-GOP-e RINO

I assume you are blissfully unaware of the irony here.

Again, you simply do not know what a credit derivative is.

It is dishonest of you to lecture people on the use of instruments that you cannot identify or understand.

[Praxeologue]

For a commercial hedge among sophisticated and (initially) well capitalized parties, no deposit insurance is necessary.

[Vigilanteman]

Critics of the provision argue removing that prohibition could expose taxpayers to risks if banks trade in derivatives and end up collapsing, requiring and FDIC rescue.

Huh? What am I missing here? If the banksters wish to gamble with their depositor's money aren't they breaking the law by restoration of the prohibition against derivatives trading?

If their gambling isn't guaranteed by the FDIC, won't that force many of them to go back to making money by old-fashioned methods such as car loans, home loans and the like?

[Yollopoliuhqui]

Just watch this video:

The Money Masters

https://www.youtube.com/watch?v=Dq9yjt_JbWs

[Georgia Girl 2]

I would like to see all of Dodd Frank repealed and Glass Steagall re-instated.

[Cen-Tejas]

.....to wideawake and Laissez Faire Capitalist:

I don’t understand what either one of you guys are saying about this complex subject and I know more than a little bit about big risk.

How about a compromise and that is that whatever Ted Cruz thinks about the subject be good enough for all of us since he’s the only honest person in the Congress. Well, maybe there are a few more!

[Tzimisce]

I’ll try to act surprised when they all vote for it.

[jwalsh07]

Can you tell my why banks get the profits if their gamble pays off and taxpayers get the bill if it does not? Does that sound like free market capitalism to you?

[paristexas]

“Can you tell my why banks get the profits if their gamble pays off and taxpayers get the bill if it does not? Does that sound like free market capitalism to you?”

Good point.

[ConservingFreedom]

Not hedging interest rate risk would be the financial equivalent of driving 175mph.

It's not self-evident that banks engage in derivative swaps only to the extent necessary to hedge interest rate risk, rather than to a speculative extent.