April 9, 2010

FREE MARKETS REQUIRE REGULATION:

Five Big Banks Control Risky Trades at Center of 2008 Financial Crisis (Tom Diemer, 4/08/10, Politics Daily)

A financial reform package, nearing a vote in the Senate, may not go far enough in reining in credit default swaps -- the risky deals that were part of the 2008 financial crisis. The trading is an ongoing practice, now controlled by five large banks, according to a report published by the Brookings Institution.

The banks, Citicorp, Bank of America, JPMorgan Chase, Goldman Sachs and Wells Fargo, will be able to get around looming financial reform legislation unless the government deals with antitrust problems to assure more transparency in the transactions, National Journal Online reported Thursday in a story on the new study.

Posted by Orrin Judd at April 9, 2010 5:53 AM
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