Geithner seeks clampdown on derivatives dealers

[ProSense]

Geithner seeks clampdown on derivatives dealers

By Rachelle Younglai Rachelle Younglai – Fri Jul 10

WASHINGTON (Reuters) – U.S. Treasury Secretary Timothy Geithner on Friday proposed clamping down on dealers in freewheeling markets for derivatives, the little-understood, complex securities that helped create a crisis in U.S. and world financial markets.

In testimony before two congressional panels that will play a role in writing legislation on derivatives, Geithner set out proposals that would make big dealers like JPMorgan Chase (JPM.N) and Goldman Sachs (GS.N) subject to much stronger supervision.

"We propose to require all OTC (over-the-counter) derivatives dealers ... be subject to substantial supervision and regulation, including conservative capital requirements, conservative margin requirements and strong business conduct standards," Geithner said in comments that acknowledged there were few limits in the past.

The Obama administration is trying to bring about a sweeping overhaul of the U.S. financial regulatory system in the wake of a two-year old credit crisis that has hobbled economies worldwide.

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[rurallib]

1. I'll believe it when I see it.

[uponit7771]

2. IF...IF this happens gas prices can be controlled to a certain degree. these people drive up the...

...prices of commodities mostly because of the removal of regulations that said you can't have more buyers than there are tangible items.

[HCE SuiGeneris]

3. Do it.

Now.

[backscatter712]

4. One thing to be said about Geithner...

assuming he's been persuaded to start doing the right thing (I'll leave it to you to determine if he's doing so yet, my impression is that he needs more persuasion) is that he knows exactly where the all the skeletons are buried, and he knows all the dirty tricks in the business that need to be reined in (assuming he and Summers were inclined to do so...)

[Lord Helmet]

5. Just do it.

[FrenchieCat]

6. He can't just "do it"; Congress has to pass a bill.

He telling them what he wants.....

[lamp_shade]

7. I watched an hour or so. He made it VERY clear a number of times that it ain't gonna work without

congressional legislation and, more importantly, oversight. He kept driving at that. I thought to myself "This congress, which really only works 3 days a week, is being forced to get the lead out of their behinds and get some serious work done. Until President Obama took the reins, they've had it pretty easy. They've been handed a whole lot of "hard work" to do for the people, something they're just not used to. Some (many actually.. even Dems) are resisting. It KILLS me when hearings are cut short on Thursdays because so-and-so has a plane to catch.