Barney Frank is spot on with this. Voters may not be in favor of generic regulation, but if the alternative is collapse of a global economy then a bailout of the most privileged 1%, the answer may be a bit different. Why are the Republicans so strongly in favor of hiding shady trades and not protecting Americans? It was a costly mistake by both Democrats and Republicans to trash the regulations that protected the country since the Great Depression so turning back the clock once again makes no sense.
Why would anyone want more secrecy on Wall Street?
The Republican-led House passed two measures on derivatives. One would exempt inter-affiliate swaps, or the exchange of risk through financial derivatives within parts of a company. Under a second, these swaps would still have to be reported but margin, capital and real-time reporting requirements would not have to be followed. The bills now go before the Democrat-led Senate.
"The lack of transparency on derivatives would be a step backwards," Frank said. "There's a notion that the more we regulate, the worse off we'll be. I think it's the less we regulate."