Steve Lynch: “I thank the gentlelady for yielding, and I want to associate myself with her earlier remarks on this bill, as well as…”

“I thank the gentlelady for yielding, and I want to associate myself with her earlier remarks on this bill, as well as the remarks of Mr. Peterson of Minnesota. Mr. Speaker, I rise today in strong opposition to H.R. 992, the misleadingly named Swaps Regulatory Improvement Act. If you need to know one thing about this bill, it is that a vote for this bill is a vote to provide taxpayer funding and backing for the kind of reckless derivative trading that brought our economy to the brink of catastrophic collapse. It is as simple as that. The bill before us today would repeal the provision in the Dodd-Frank reform law that requires too-big-to-fail banks to push their risky derivative dealings out of banks that receive taxpayer support and into separately capitalized subsidiaries. This bill is not a regulatory improvement. It is a giveaway to Wall Street, and it is an abdication of the duty of this body to protect taxpayers from Wall Street speculators. I want to point out a couple of things that have been, I think, misleading here. Dodd-Frank already allows banks to keep derivatives that they use for bona fide hedging purposes or for traditional banking activities within the insured bank. Interest rate and foreign exchange swaps, which make up 90 percent of swaps volume, are the most likely to be used by end-users to manage their risk; and those are already exempt from the push-out under section 716. So end-users can already benefit from 90 percent of the swaps that are out there.…”