Congresswoman Maxine Waters (D-CA) and Former Representatives Barney Frank today released the statements in opposition to H.R. 992, the Swaps Regulatory Improvement Act. Waters led opposition on the House Floor and expressed her concerns about weakening of Dodd-Frank reforms before regulators have completed them.
“The financial crisis of 2008 wreaked untold havoc on the US economy. This disaster, which was intensified by the use of derivatives, set back hard-working Americans for generations. At the same time it bailed out many of the nation's largest banks. The Dodd-Frank Wall Street Reform Act sought to put our financial markets back together, by creating comprehensive oversight and reforms for derivatives markets, as well as prohibitions on banks betting with taxpayers resources.
This legislation will effectively allow banks to undertake derivatives trading with depositors’ money. If the banks lose money on this sophisticated trading, systemic risk could creep back into our financial system, once again putting the economy – and the American taxpayers – at risk.
H.R. 992 would undo some of these reforms before our regulators – Wall Street's cops – have a chance to finish them, especially the ‘Volcker Rule.’ Congress passed rules like Volcker to stop banks from using taxpayer-backed customer deposits for trades intended to only benefit the bank and not its customers. Passing this bill before they are finished is a step backwards in repairing our economy.”
In light of the mentioning of Former Congressman Barney Frank on the House Floor, he released the following statement:
"Now that the Lincoln amendment is part of the law, it would be a mistake and destabilizing to repeal this provision. I would vote against H.R. 992."