Almost everything you buy (gas, cereal, coffee, etc.) is connected to complex financial instruments called “derivatives,” about 90% of which are controlled by the five biggest Wall Street banks. If those gigantic derivatives-dealing banks are not properly regulated, then they play with the prices hardworking Main Street Americans pay for almost everything. They make the prices bounce up and down (called “volatility”), which is great for Wall Street bonuses, but really bad for consumers, farmers and the real economy that makes goods and services that people want and need.
It’s also bad because derivatives were at the core of causing and spreading the catastrophic 2008 financial crash when all of those gigantic banks and derivatives dealers got trillions in taxpayer and government bailouts. That’s why Warren Buffett called derivatives “weapons of mass financial destruction.”
That’s why our President and CEO testified before the Senate Committee on Agriculture: to make sure these derivative-dealing, gigantic banks are properly regulated, serve not threaten Main Street, and never again get taxpayer bailouts.
You can read Dennis Kelleher’s opening statement by clicking here.
- The Better Markets breakdown of a non-prohibitive user fee to accomodate funding increases for the CFTC is on page 20 of the Written Testimony linked above. Further depth on the matter begins on the fourth page of this document (Re: CFTC Reauthorization and funding).