Capital Markets: “Washington Has Been Dealt a Good Hand”

New York Times, Friday, May 24, 2013

BANKS’ LOBBYISTS HELP IN DRAFTING FINANCIAL BILLS: WALL STREET CAMPAIGN

Tougher Oversight Rules Create Tighter Focus on Washington, by Eric Lipton and Ben Protess

WASHINGTON–“In a sign of Wall Street’s resurgent influence in Washington, bank lobbyists are not leaving it to lawmakers to draft legislation that softens financial regulations.  Instead, the lobbyists are helping to write it them selves.

One bill that sailed through the House Financial Services Committee this month–over the objections of the Treasury Department–was essentially Citigroup’s, according to e-mails reviewed by the New York Times.  The bank’s recommendations, which were reflected in more than 70 lines of the House committee’s 85-line bill, would exempt broad swaths of trades from new regulation.  Two crucial paragraph, prepared in conjunction  with other Wall Street banks, were copied nearly word for word. (Lawmakers changed two words to make them plural.)

Industry executives said the change they advocated was good for the financial system, not just the bank.”   However, there are some concerns about the bill: “the bill restores the public subsidy to exotic wall Street activities,” said Marcus Stanley, the policy director of Americans for financial Reform, a nonprofit group.”

Jamie Dimon, JPMorgan’s chief executive, on a trip to Washington,  said, “America has the widest, deepest and most transparent capitalmarkets in the world;  Washington has been dealt a good hand.”

Advertisements

Tags:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: