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Posts published in “Day: February 22, 2010”

Cantwell and Wall Street

cantwell

Maria Cantwell

You can't say that no one in Washington is trying to loose the hounds on the financial high-chargers who, with their endlessly creative financing efforts, crashed the country's economy. Not many visible people in Washington have delved deeply into this murk. But at least a couple of Northwest senators have: Jeff Merkley of Oregon, and to even a larger degree, Washington's Maria Cantwell.

A Seattle Times piece out today is one of the few really to highlight this, although her work on big business finance goes back some years to her ongoing war on Enron. The article notes: ". . . crusading against 'dark market' derivatives trading? Agitating about the systemic hazards of mingling commercial and investment banking? Trash talking about the Obama administration's finance team?" Cantwell's been doing all that.

And, "She has introduced bills to curb such speculative trading and to allow state gambling commissions and attorneys general to oversee unregulated, or "dark market," derivatives trading. In addition, Cantwell, along with Republican Sen. John McCain of Arizona, wants to resurrect a strict separation between commercial banks and investment firms. At the same time, Cantwell has displayed exasperation with what she sees as inadequate regulatory actions so far. She slammed Treasury Secretary Tim Geithner as an 'enabler' who isn't truly reining in Wall Street's excesses."

More to the ground, consider this from a Cantwell February 3 press release:

"Senator Maria Cantwell (D-WA) said today Congress and the Obama administration must establish tough regulatory oversight and transparency in derivatives trading and commodities markets to prevent abuses that helped bring about the economic crisis. Cantwell joined commodity “end-users,” – businesses that actually trade in or use commodities such as petroleum and agriculture products – and consumer protection organizations, to advocate moving all standardized derivatives onto fully regulated public exchanges and clearinghouses. Loopholes in the House-passed bill leave up to 60 percent of the derivatives market without minimum requirements for capital behind trading positions. The resulting unregulated and highly leveraged gambling in derivatives, Cantwell said, were a major contributing factor in a financial crisis that has now become an economic crisis."