I am just saying that, banks using derivatives and swaps as addressed in the text, is definitely NOT "speculation". If there is $300 trillion in notional derivatives/ swaps in the market, no doubt there likely is a very large amount that IS structured in a speculative way. I am not taking up for that, and certainly not for a bailout of any of it. But allowing derivatives and swaps to be used for true hedging and risk reduction strategies is a very good thing.
Swaps and derivatives are not innately evil when put to the correct use. The problem was that they were used for speculation and gambling. Honestly do away with "too big to fail" and re-institute market discipline to the large banks and the landscape will change quickly. Permitting gambling on the taxpayer dime is just flat evil. But we should not throw the baby out with the bathwater. The result would be either an elimination of banking services or an increased cost to the consumer. There are plenty of other absurd regulations that are doing that already.
The person betting a trillion dollars on a hedge, which he can’t possibly pay, but he nevertheless seeks to collect the premiums from, most certainly is speculating. If the bet wins, he pockets the premium. If this bill passes, if he loses, the taxpayers pay out on his contract.