“Let’s assume that when he woke up on the morning of Dec. 12, Michael Corbat, CEO of Citigroup, was feeling pretty good. The day before, the House of Representatives had passed a bill that would save his bank and others lots of money and headaches.
“The trouble was, Elizabeth Warren, the senior senator from Massachusetts, was getting ready to speak on the Senate floor. She had his bank on her mind.
“What Warren wanted to talk about was an item tucked into page 615 of a 1,603-page spending package: the repeal of section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Known as the swaps push-out rule, section 716 required banks to set up separate subsidiaries, not backed by the government, to trade certain derivatives. If the rule stood, it would generate huge administrative costs for the big banks.”
“A Republican Senate would not take up Wall Street deregulation now,” says Dennis Kelleher, president and CEO of Better Markets, a watchdog organization that monitors Wall Street’s influence in Washington. “Nobody wants to be seen as siding with the big Wall Street banks.”
Read the full Bloomberg article by Katrina Brooker here.