[StBernard] Frank Statement on Derivatives

Westley Annis Westley at da-parish.com
Fri Nov 6 13:58:54 EST 2009


Frank Statement on Derivatives



Washington, DC - Today, Financial Services Committee Chairman Barney Frank
(D-MA) released the following statement regarding a response
<http://financialservices.house.gov/pdf/Gensler_Reply_to_Rep_Frank.pdf>
received from Commodity Futures Trading Commission Chairman Gary Gensler.
Chairman Gensler's letter was responding to Chairman Frank's Nov. 4 letter
<http://www.house.gov/apps/list/press/financialsvcs_dem/pressshapgens_110409
.shtml> .



"I appreciate Chairman Gensler's agreeing that we should change the
provision of the derivatives bill that he requested that would have put the
clearinghouses in charge of determining that a trade is clearable. As some
people pointed out, this could have given rise to a conflict of interest,
given the financial stake that many firms have in the ownership of
clearinghouses. While Chairman Gensler originally had indicated that making
the clearing determination would be burdensome for the CFTC and thus should
be left to the clearinghouses, I am now pleased that he agrees that the
regulators should take on this function, which is preferable to the
potential conflict.



"Our committee will work with the CFTC and the SEC in providing them the
authority to make these decisions in as an efficient and expeditious manner
as possible."





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