Senator Seeks to Limit Banks’ Role in Derivatives (NY Times)

By | March 31, 2010

The Senate has its own version of the Lynch Amendment passed by the House in December courtesy of Rep. Brown.  I understand the general concern of leaving too much power with the dealers, but limiting their investment in crucial market venues will ultimately limit competition and innovation.  My quote in the article:

“I can’t imagine the Senate would include the Brown amendment, especially at that 20 percent level that was in the House bill,” Kevin McPartland, an analyst at the Tabb Group, a financial consulting firm, told DealBook. “I think there are just too many downsides to keep dealer investment out of these areas.”

Full Article at NYTimes.com

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