They did not remove it. They changed Sec. 176
Spending bill funds SEC and CFTC amends Dodd-Frank swaps push-o
Dodd-Frank swaps push-out provision. Currently, Section 716 of Dodd-Frank prevents federally insured financial institutions from conducting certain swaps trading, including trading of commodity, equity,
and credit derivatives. This prohibition compels financial institutions to push out swaps trading into separately capitalized affiliates. The measure would amend Section 716 of the Dodd-Frank Act to protect farmers and other commodity producers from having to put down excessive collateral to get
a loan, expand their businesses, and hedge production.
It would allow financial institutions to continue to conduct risk-mitigation efforts for clients, such as farmers and manufacturers, who use swaps to insure against price fluctuations. It would also modify Section 716 to allow commodity and equity derivatives in financial institutions with federal deposit insurance. However, derivatives involving structured finance transactions would still need to be pushed out of a federally insured financial institution.
Under the legislation, the only swaps that covered depository institutions must spin out to separately capitalized entities are structured finance swaps unless they are undertaken for hedging or
risk management purposes or expressly permitted by prudential regulators to take place in a covered depository institution. The bill also ensures that uninsured U.S. branches and agencies of foreign banks are treated the same as insured depository institutions by defining both groups as covered depository institutions.
Office of Financial Research. The measure contains additional reporting requirements to increase transparency of the activities of agencies whose funding jurisdiction fall outside annual congressional review. Specifically, the Office of Financial Research must provide quarterly reports on its activities to Congress. The reports must include, among other things, the obligations made during the previous quarter by object class, office, and activity and the estimated obligations for the remainder of the fiscal year by object class, office, and activity.
What President Obama objects to is that he said, the swaps push-out rider would weaken a critical component of financial system reform aimed at reducing taxpayer risk.
I think that the additional reporting requirements would stop that from happening..
Changing the bill to protect farmers and other commodity producers from having to put down excessive collateral to get
a loan, in order to expand their businesses, and hedge production to me is a good thing.