Legislators Must Lobby for Meaningful Financial Regulations

Rules scheduled to take effect in mid July for the $601 trillion swaps market will be delayed as the Commodity Futures Trading Commodities voted to give itself until Dec. 31 to impose new restrictions on trading derivatives, financial instruments that can be used to hedge against risks or make speculative investments.

The San Diego Union-Tribune, Business Section July 15, 2011

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The above very brief article in the July 15, 2011 Union-Tribune clearly indicates that the powerful financial industries will fight tooth and nail to block any meaningful reforms on transparency and leverage.

Insurance giants are attempting to disguise liabilities for regulators in order to underfund reserves required to pay claims when they occur. With this knowledge, the same agents will purchase credit default swaps and collect while once again the taxpayers will be required to make up the losses when claims must be met.

Every elected representative must use all available media to lobby for tough, meaningful regulations in order to prevent another financial crisis.