Comment Text:
As a result of the chicanery on Wall Street, thousands of hard working Ameircans have lost 50% of the value of their homes and their investments and for many, even their livelihoods. I am seething mad and never again want to be called upon to bail out big corporations and Wall Street banks for their egregiously irresponsible "heads I win, tails you lose" gambling. This "new wave" business model involving the privatization of profits and the socialization of losses must be stopped dead in its tracks once and for all. The heinous toll on the economy and society has been debilitating.
Effective oversight of the $700 trillion global derivatives market is a key to meaningful reform. Because the global financial market has become so technologically advanced, particularly in terms of speed, risks can be transferred around the world within moments at the touch of a button. The proposed guidance you have issued on cross-border application of Dodd-Frank derivatives rules shows that you understand the importance of this issue. But the proposal contains multiple loopholes that could allow foreign affiliates of Wall Street banks to escape regulation. Big U.S. banks and other major U.S. derivatives users are global corporations with hundreds if not thousands of foreign affiliates. If we don’t regulate all, everywhere, we can’t regulate any, anywhere. Please make this guidance stronger to ensure that new Dodd-Frank derivatives protections will directly apply to the full global activities of all related participants in the U.S. derivatives markets.
Although I strongly believe that Glass-Steagall needs to be reinstated I am able to accept strict financial reform provided it assesses sizeable monetary penalties and criminal prosecution for those that choose to continue to behave recklessly.
Most Sincerely,
Dona LaSchiava
