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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Wednesday, June 26, 2013

Goldman Sachs Loves Those Derivatives Revenues!

It is very important to note what Gary Gensler is trying to accomplish as chair of the CFTC just as he is being forced to leave his position.  As Yves says, "The proximate reason for his ouster was that he was refusing to accede to the demands of banks and foreign regulators over implementation of Dodd Frank rules on swaps."

But that very regulatory requirement is exactly what is needed to reform the financial system where it is most vulnerable.  It is very refreshing to see an ex-Goldman Sachs guy performing a service for the public.  The banks' resistance is intense because their profits could be reduced.  Greed again!

Gensler Staring Down Administration and Banks on Derivative Reform
Article by George Bailey (member of Occupy the SEC) posted and commented on by Yves Smith - Naked Capitalism
. . . .
PriceWaterhouse Coopers prepared an explainer of Dodd Frank cross border derivatives rules conflicts, for anyone looking for an accessable [sic] layman’s version of the issues involved in the current state of play.
Preparedness scheduling was predicated on the assumption that Gensler would extend the relief period. It may already be too late implement the operational changes necessary to comply with the regulations. There is a lot of anxiety on Wall Street, in DC, and in Europe.

Gensler hasn’t given any indication he intends to back down. Industry, regulators and government policy makers all expected this to have the rules finalized months ago. Instead it’s turned into a multi dimensional game of chicken. His fellow commissioners are in open revolt so concensus [sic]  within the CFTC appears to be unlikely. Absent an extension, everyone will be out of compliance and in uncharted legal territory come July 12. Gensler has, so far, refused to put an extension on the agenda for a vote. He controls the agenda as Chairman.

The Europeans are so incensed they took to scolding the CFTC Chairman in an op-ed by Michel Barnier, in Bloomberg. Dennis Kelleher of Better Markets did a fine job if [sic] debunking this extraordinary display of pique.

Read the whole article here


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