Secretive elite rules trading in derivatives

[Chris]

On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.

The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.

Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk.

In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.

The banks in this group, which is affiliated with a new derivatives clearinghouse, have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available.

http://www.nytimes.com/2010/12/12/b...l?_r=1&pagewanted=1&nl=todaysheadlines&emc=a2

 

[liebuster]

Nothing new here. Its good to see people starting to wake up though. Maybe we'll do something about it one of these days.....

 

[william the wie]

Chris, I like the OP and find it valuable but I have a question:

The only people who could have and must have greenlighted this deal are Frank, Dodd, Geithner and Bernancke so why are you as a left-liberal exposing this possible corruption?

 

[loosecannon]

probably because the new head of the congressional Financial Services committee is a republican.

Regulators exist to ‘serve the banks,’ next House finance chairman declares | Raw Story

and he wants to withdraw congressional regulation over derivatives.

 

[Chris]

probably because the new head of the congressional Financial Services committee is a republican.

Regulators exist to ‘serve the banks,’ next House finance chairman declares | Raw Story

and he wants to withdraw congressional regulation over derivatives.

Just like the Republican who apologized to Tony Stewart at the BP hearing last year.

They know who their masters are.

 

[loosecannon]

So does Obama. His largest private campaign contributor was Goldman Sachs and he appointed a former Goldman Sachs exec as his Treasury sec. Top Contributors to Barack Obama | OpenSecrets

Goldman Sachs $994,795

Wall street owns and operates BOTH parties.

 

[william the wie]

So does Obama. His largest private campaign contributor was Goldman Sachs and he appointed a former Goldman Sachs exec as his Treasury sec. Top Contributors to Barack Obama | OpenSecrets

Goldman Sachs $994,795

Wall street owns and operates BOTH parties.

Bush's treasury sec Paulson was from Goldman Sachs and its former head but Geithner, Obama's treasury secretary, was not and could not have become a GS exec. He lacks the minimum competence needed to work there as he demonstrated by being DC's pointman in the meltdown.

 

[loosecannon]

thanks for the correction, Willie.