Wall Street’s Latest Lawsuit Is Just Another Meritless Attack on Financial Reform
“The financial crash of 2008 was incubated, ignited and spread around the globe by Wall Street’s unregulated gambling with derivatives. While that gambling happened worldwide, U.S. taxpayers got stuck with the bill regardless of where the gambling took place. For example, AIG’s gambling with Goldman Sachs, Morgan Stanley, JP Morgan Chase and dozens of other banks was done in London, but U.S. taxpayers got the $182 billion bailout bill,” said Dennis Kelleher, President of Better Markets, Inc., an independent nonprofit organization that promotes the public interest in the financial markets.
“As proved by the last crisis, which is going to cost the U.S. more than $12.8 trillion, that type of high risk recklessness is very rewarding for Wall Street, but very costly for Main Street. That’s why the financial reform law required the CFTC to regulate derivatives activity, regardless of where it occurs in the world, if it can harm the U.S. and risk more U.S. taxpayer-funded bailouts. That’s what the CFTC has done in its ‘cross-border’ guidance,” Mr. Kelleher said.
“However, the CFTC’s regulation of Wall Street’s overseas derivatives activities is going to reduce bonuses and that’s why they are suing. Wall Street is asking the court to order the CFTC to stop protecting the American people from the very type of unregulated derivatives dealing that caused the last financial crash. This lawsuit is just the latest battle in Wall Street’s war against financial reform and its relentless attacks on the underfunded, understaffed agencies responsible for protecting the American people from Wall Street. It is meritless and hopefully will be thrown out,” Mr. Kelleher concluded.
Better Markets is an independent, nonprofit, nonpartisan organization that promotes the public interest in financial reform in the domestic and global capital and commodity markets. Better Markets advocates for transparency, oversight, and accountability with the goal of a stronger, safer financial system that is less prone to crisis and failure, thereby eliminating or minimizing the need for more taxpayer funded bailouts.