Comment Text:
Submitter Info:
First Name: Perry
Last Name: Adams
Mailing Address: 63 Lincoln Dr
City: Sausalito
Country: United States
State or Province: CA
Postal Code: 94965
Dear Chairman Gensler:
Below is the primary comments but if you have not read this article today on Huffington Post then it says it all to me.
http://www.huffingtonpost.com/2011/02/15/gambling-on-hunger-food-crisis-regulators_n_823725.html?ref=email_share
Re: End-User Exception to Mandatory Clearing of Swaps (RIN 3038-AD10)
The big banks and their allies are pushing for changes in the transparency requirements of Dodd-Frank that would throw important trades back into the shadows. Specifically, they are calling for exemptions for a very broad array of companies from the clearing and margin requirements of the act.
Dodd-Frank already contains an exception for legitimate end-users, such as airlines and farmers, who are doing commercial hedging as part of their business from clearing and exchange trading requirements.
We must not broaden this narrow, commonsense exception to include financial and commercial institutions that want to gamble in the derivatives markets. Doing so would allow systemically important companies to enter into risky trades in a market with zero transparency and accountability.
This is exactly the kind of murky shadow banking that led to the meltdown - as every objective observer of our present financial situation well knows. Please implement Dodd-Frank as written and do not give in to the pressure to weaken the legislation in the rulemaking process.
The only benefit, real benefit of not having transparency and accountability is the money gamed by the institutions and the traders...the cost continue to rise for the individual and that impacts everyone and the return of our economy.
Thank you!
Thanks for your help!
Americans for Financial Reform
