misebogland

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Rather than delaying reform of derivatives for banks that are backed by federal deposit insurance (thus making the taxpayer liable for paying for investment banking risks), why not take away the commercial part of these investment banks?  Investment banks make the risky bets and investment banks should pay for their own risks without any help from taxpayer insurance.

Better yet, outlaw altogether all derivatives that are based on speculation!  The financial crisis of 2008 was directly a result of the use of toxic derivatives instruments called CDOs.

JPMorgan to BofA Get Delay on Rule Isolating Derivatives

JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS) and Bank of America Corp. won a delay of Dodd-Frank Act requirements that they wall off some derivatives trades from bank units backed by federal deposit insurance.

Commercial banks including the Wall Street firms may get as long as an additional…

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