Senate panel approves tougher derivatives rules

Source: Associated Press

WASHINGTON – A Senate panel has approved legislation that would limit the ability of Wall Street banks to trade complex financial tools called derivatives.

The bill offered by Senate Agriculture Committee Chairman Sen. Blanche Lincoln, D-Ark., would also improve transparency of most derivative trades.

Lincoln's proposal is more sweeping than those offered by the Obama administration and the House.

Derivatives are financial products — such as corn futures — that rely on the value of some underlying investment. Companies use them to hedge against risks. But derivatives have become a vehicle for speculation, with critics blaming them for contributing to the financial crisis.


Read more: http://news.yahoo.com/s/ap/20100421/ap_on_bi_ge/us_financial_overhaul_derivatives_2

the OTHER economy. From my readings on the subject, it is an enormous one.

That 12 times the worth of the entire global economy! Go figure!

................Overall I like it here, but the politics are a little too far to the right for my tastes. I describe myself as just to the right of Karl Marx.

I do agree they are a bit too far to the right.

However, I live in central AR so we have more rational people here.
My username pretty much explains where I fall on the political spectrum. =]

............an agnostic. Good luck to ya, and hope to see you more at DU in the future.

Does this proposal repeal any of the legislation that Phil Gramm rammed through in late 2000, that basically set the derivatives traders loose to plunder the country?

Wayne Newton will be entertainment at the Grand Opening.