Wall Street hoping that the Senate bill gets watered down

[ProSense]

Senate bill provision:

Derivatives

Mandates exchange trading and clearing for most derivatives, with a limited end-user exemption. Forces federally insured banks to spin-off their swaps desks.

Buried in a NYT article titled, "As Reform Takes Shape, Some Relief on Wall St."

A Senate proposal calls for Wall Street firms to wall off their derivatives businesses and place them in subsidiaries requiring substantially more capital. That would be a major blow — but this provision faces opposition from the both the financial industry and federal banking regulators, and is likely to be shelved or watered down before final passage.

[OHdem10]

1. Wall Street is happy with the bill. Greatly relieved. in spite of public

posturing.

[Name removed]

2. Deleted message

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[ProSense]

3. Idiotic.

The notion that Wall Street is looking forward to big financial institutions being forced to spin off non-bank entities and the entire reform package is ludicrous.

[ProSense]

4. The article is to psych people out and

distract from the fact that the bill currently includes major reforms:

Though there is anger in some quarters, other financial executives seem resigned to the changes, acknowledging that after the industry’s excesses set the stage for the deepest recession since the 1930s, there were bound to be major reforms.

Yeah, they're just pleased as punch that major reforms are being presented.

Maybe they'll send the lobbyists home and leave the derivatives provision intact. After all, isn't it worth celebrating?

[Cha]

5. Of course they are..as Krugman wrote

the corps don't like regulations and that those for wall street, too.

[denimgirly]

6. So in other words, MORE watered down...Nothing new here.

And i very much expect it will be more watered down. Wall Street is already pleased.

[ProSense]

7. Wall Street hopes to dodge two reform bullets

Wall Street hopes to dodge two reform bullets

By David Ellis, staff writer

NEW YORK (CNNMoney.com) -- With any luck, Wall Street can still escape two of the harshest elements of Washington's reform efforts.

The two measures, included in the Senate bill passed last week, take direct aim at some of the more risky -- and profitable -- parts of banks' business.

One proposal would require financial firms to spin off their trading desks that deal in derivatives.

The other -- dubbed the Volcker Rule for its proponent, former Federal Reserve Chairman Paul Volcker -- would ban banks from wagering with the firm's own money, what the industry calls "proprietary trading." Firms would also be restricted from investing in or sponsoring private-equity funds or hedge funds.

The restrictions, if included in the final bill, would hit bank profits.

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