Occupy the SEC is a group of concerned citizens, activists, and financial professionals with decades of collective experience working at many of the largest financial firms in the industry. This is our roundup of juicy press about Wall Street and financial regulation, for this week.
Elizabeth Warren along with a group of bipartisan lawmakers are introducing a bill aimed at recreating the Glass-Steagall Act, which separated commercial banking from investment banking, before it was repealed under Clinton with the Gramm-Leach-Bliley Act in 1999. Carter Dougherty and Cheyenne Hawkins at Bloomberg July 11, 2013.
Chase gets caught robo-signing affidavits in credit-card collection lawsuits in order to make selling credit card debt to collection companies even easier. Matt Taibbi at Rolling Stone July 11, 2013.
The dust is still settling, so we don’t know yet how this will work out, but the CFTC caved to pressure from industry and overseas regulators to limit the scope of US oversight of crossborder swaps. In a 3-1 vote today, the Commissioners agreed to put out guidance for swaps dealers and investors about how the new regulatory boundaries would work. Considering London’s notoriously “light touch” approach to regulation that brought us the London Whale, it’s hard to be optimistic. Silla Brush at Bloomberg July 12, 2013.
The SEC gives Wall Street a huge gift as it allows hedge funds to advertise to investors who are “accredited” (people who have at least $1 million net worth not including housing). Nine million people are “accredited”, many of whom will wade into the risky waters of hedge funds for a taste of their alleged prestige. This is vindication for all those Mary Jo White skeptics who questioned her nomination. Heidi Moore at The Guardian July 10, 2013.
Timmy Geithner’s post-Treasury activities highlight the lucrative speaking fee circuit that seems to be the thing to do these days (rather than the bad-optics of lobbying) for slimy politicians after they leave office. Lynn Parramore at Alternet July 10, 2013