The Congressional showdown on the proposed financial regulation of Wall Street “derivative swaps” — separating them from bank funds insured by you and me, leaving them “at risk” for the investors (gamblers) who use them – is TODAY.
Senator Blanche Lincoln (D-Arkansas) proposes to put them in a separate uninsured “piggy bank” altogether (Section 716). Rep. Barney Frank (D- Mass.) proposes to put them in a separate jar in the insured piggy bank. I am paraphrasing here.
Kids! Here’s your chance to show grown ups how to make banks safer. Math is too hard for so many of them.
#1. Help Barney Find Section 716! OK?
#2. Blanche has it!
#3. If Barney and Blanche agree — then your piggy bank will be safer, and risky gamblers have to gamble with their own money not yours, OK?,
and we can all sing “I love you, You love me, We have a safe economy.” OK?
Remember the S&L Crisis? No? Nobody else does either.