With little fanfare, and on behalf of their bank constituents, Republican budget negotiators steadfastly required a repeal of the "Swaps Push Out Rule" in the recently passed US budget bill. This provision was a critical component of Dodd Frank designed to get swaps trading out of the federally insured part of large financial institutions and prevent more bank bailouts. Its repeal effectively codifies "too big to fail" instead of preventing it. I hope this Republican slight of hand is brought to the attention of the American public and they are outraged!
Behind the scenes...the nation’s Too Big To Fail banks used the Omnibus spending bill that is necessary to finance federal spending in 2015 to undo this little-known Dodd Frank provision that might have restricted the volume of trading in financial derivatives that have been a major source of profits as well as controversy since the 2008 financial crisis. Former Rep. Barney Frank, who was a key sponsor of the Wall Street reform legislation, attacked the change in Dodd-Frank as “a road map for further attacks on our protection against financial instability.” Frank was incensed that the last-minute procedure was “inserted with no hearings, no chance for further modification, and no chance for debate into a mammoth bill in the last days of a lame-duck Congress.”