On Friday, Senate Agriculture Committee Chairwoman Blanche Lincoln (D-AR) introduced the Wall Street Transparency and Accountability Act.
According to a press release, this bill would “bring 100 percent transparency to the nation’s financial markets, prevent future bailouts and protect jobs on Main Street.”
“The days of backroom Wall Street deals are over,” Lincoln said. “This is the strongest Wall Street reform bill to date and represents an historic opportunity for real reform. America’s consumers and businesses will finally see a financial market that operates in an open and transparent manner.”
Reuters takes a look at some key provisions in this draft proposal:
- “would require banks to spin off swaps desks if they are protected by federal deposit insurance or access the Federal Reserve discount window”
- “would require most swaps to trade on regulated exchanges and pass through clearinghouses”
- “exempts commercial end users from mandatory swap clearing while prohibiting financial entities from opting out”
- “bans federal assistance, including federal deposit insurance and access to the Federal Reserve discount window, to swaps entities in connection with their trading in swaps or securities-based swaps”
- “allows the Commodity Futures Trading Commission, which overseas the futures markets, to impose position limits on swaps that perform or affect a significant price discovery function in the market”
The Agriculture Committee may begin mark-up work on the measure this week.
Some bill links:
(credit image – associated press)