Derivative

I have been lambasting the prancing on Capital Hill over the lack of reform regarding financial institutions and low and behold, the main prancer of Congress has done me even better. Barney Frank, getting his marching orders from the White House has a plan to regulate derivatives. Kind of. Bloomberg has the story.

"A plan offered by the Obama administration would subject all swaps dealers and "major market participants" to new regulations for capital, business conduct, record-keeping and reporting. [Representative Barney] Frank's version would exempt corporations from that definition if they use derivatives for "risk management" purposes.

While Frank's proposal is a "step in the right direction," its "ambiguous" definition of risk management may leave a large number of corporations unregulated, Henry T.C. Hu, director of the SEC's new division of risk, strategy and financial innovation, told the committee."

If there is one thing the gang on Wall Street understands is language that makes things impossible to enforce. TARP money anyone? How about paying it back? So, a plan that ambiguous is par for the course and exactly what should be expected from the spineless democrats and the do nothing republicans. While the financial situation of this country and indeed the world continues to teeter, people like Frank have misused their power to enforce the concept of see nothing, do nothing get reelected.

There is no shame on Wall Street and certainly none in DC. The elected morons are only a slight step ahead of the dopes who managed to bring the world to it's knees about a year ago and guess what? Both the idiots in Washington and the retards on Wall Street are still there, wearing fine suits, drinking expensive wine and laughing out loud at the inaction both parties continue to trumpet as reform.