Cumberland Times-News

Letters

October 28, 2013

Delaney may derail Dodd-Frank component

This week, the House of Representatives plans to vote on a measure — HR 992 — that would repeal a section of the 2010 Dodd-Frank Wall Street Reform Act that prohibits gambling by banks with FDIC-guaranteed deposits.

If he votes the same way as he did in committee, U.S. Rep. John Delaney, D-Md., who represents Western Maryland, will support this measure. In effect, he will support a measure that subsidizes Wall Street gambling.

House Financial Services Committee Republicans have long been in favor of this carve-out for Wall Street. So it was no surprise when they voted unanimously on May 7 in favor of HR 992 and eight other bills to eviscerate important safeguards in the 2010 Wall Street Reform Act pertaining to derivatives supervision. But Western Maryland taxpayers would perhaps be surprised to learn that Rep. Delaney and several other Democratic freshman also jumped on board.

Derivatives have to do with the gambling aspect of financial firms’ operations, as it is the part in which they make high-stakes bets under the guise of “hedging.” For instance, the unregulated “credit default swaps” that nearly caused a full meltdown of the financial sector in 2008 were derivatives, as was the “London Whale,” JP Morgan’s major loss this year. Swaps are a form of derivative. HR 992 is formally titled the “Swaps Regulatory Improvement Act.” Washington is prone to misleading names. We view this bill as deregulating swaps. Former FDIC Chair Sheila Bair vocally opposes HR 992, as do many other reform experts.

HR 992 involves obscure terms, which, alas, are where the “muggers hide,” as U.S. Sen. Elizabeth Warren (D-Mass.) once said. Some members of Congress may not fully understand the content of these bills. This bill was written by lobbyists for Citigroup. (See New York Times, May 23, 2013, “Banks’ Lobbyists Help in Drafting Financial Bills, by Ben Protess; http://dealbook.nytimes.com/2013/05/23/banks-lobbyists-help-in-drafting-financial-bills/?ref=politics&_r=0)

Wall Street lobbyists may comfort them with talking points that speak to job creation, and other false claims. In fact, the Wall Street crash cost a huge number of jobs. Cumberland and Western Maryland suffer because of the distant gambling activities on Wall Street and in London.

When HR 992 came before the committee on May 7, senior Democrats generally voted against this and other anti-reform bills. They were in Congress in 2008 and saw the consequences of the crash first-hand as voter-accountable representatives.

Junior members should learn the lessons of JP Morgan, once considered the best managed and safest bank on the planet. JP Morgan’s London Whale loss may not have forced another taxpayer bailout, but shareholders lost 25 percent of their stock value when the supposedly best managed bank on the planet admitted to losing $6 billion on a bet.

Ideally, by the time this bill reaches the House floor, Rep. Delaney will have renewed understanding of the threat of deregulating the derivatives market and vote to oppose this dangerous Wall Street carve-out. His Maryland constituents and the voting public at large, depend on it.

Bartlett Collins Naylor

Washington, D.C.

1
Text Only
Letters
  • Translations differ, but the message is eternal

    This letter is in response to a recent letter titled “One cannot compromise on God’s word” (April 13 Times-News). I had previously written a letter titled “Why are compromises so difficult to achieve” (April 7).

    April 15, 2014

  • Closing the loopholes will help clear the regulatory waters

    After a decade of uncertainty over Clean Water Act jurisdiction following Supreme Court challenges in 2001 and 2006, the Environmental Protection Agency and Army Corps of Engineers announced a forthcoming administrative rule to close enforcement loopholes, restoring protections to 20 million acres of wetlands, more than half the nation’s streams, and drinking water for 117 million Americans.

    April 15, 2014

  • The first step Remember where your freedom comes from before criticizing

    The deal at Fort Hood could have been avoided if it was caught in time.
    When you think a GI is not acting right, have him or her checked out before you put them back on duty and give them a weapon. Post-traumatic stress disorder is a serious and dangerous problem if it is not taken care of right away.

    April 15, 2014 1 Photo

  • Midterm elections give chance to return to American values

    A movement has been started by veterans of our armed forces to get out the vote in 2014. That includes Coast Guard and Merchant Marine personnel for those not familiar with the history of both and their sacrifice. This is no small special interest  group, but many millions of Americans who can have an enormous impact on the  outcome of the November election if they all respond.

    April 14, 2014

  • Military veterans have few friends in Washington, D.C.

    Our legislators in Washington must stop playing politics with our veterans, this is  especially true of Vietnam war veterans. Will the game playing carry over to our veterans of present day wars? Will they too become pawns? Veterans have few friends in Washington. Just like the Vietnam veterans, today’s veterans will face
    what we are up against, little to no support.

    April 13, 2014

  • One cannot compromise on God’s word

    A recent letter asked, “What is it about compromises that seem so undesirable?” Most of us are familiar with John 3:16, which says, “For God so loved the world that he gave his only son, that whoever believes in him should not perish but have eternal life.” The next verse goes on to say, “For God did not send his son into the world to condemn the world, but in order that the world might be saved through him”

    April 13, 2014

  • Ballpark project a partnership, not a government handout

    To the Editor:
    Regarding Mark Nelson’s recent objection to county government assistance to exploring the placement of a minor league baseball team in the Cumberland region, I would answer that the project should be considered a partnership between private enterprise and government. The private support would come by way of donations collected from local citizens, currently banked through the Dapper Dan Club.

    April 13, 2014

  • Group wants status quo on Sunday hunting

    Many Maryland residents have grown very concerned about two legislative bills that are arriving on the desk of Gov. Martin O’Malley after being approved by both the Senate and House chambers this session. With the governor’s possible signature of these bills into law, hunting would be allowed on certain state lands on Sundays — a day in the past reserved for rest and non-hunters to enjoy public lands.

    April 10, 2014

  • New policies will grow better streamside buffers

    Well-functioning forest buffers along streams are perhaps the most effective and least costly best management practice we have to restore the Chesapeake Bay.

    April 10, 2014

  • City has changed, but it’s still a great place

    Is it better to be positive or negative? I have been reading postings about Growing Up in Cumberland, other Facebook pages, and from many of my Facebook friends. Talk about food and many people have positive comments. I love Coney Island hot dogs as much as anyone and have some every time I am in Cumberland.

    April 9, 2014

Latest news
Facebook
Must Read
House Ads