Despite earlier reports of a new day for the embattled Section 716 provision of the Wall Street reform bill, which would force mega-banks to spin off their swaps trading operations, a compromise appears in the works. Blanche Lincoln has a lot to think about here. She supposedly won her Democratic primary on the strength of committing to “tough” new rules on Wall Street. A compromise like this would damage that argument significantly. It’s her move.
|By: David Dayen Tuesday June 15, 2010 6:00 am|
|By: David Dayen Monday June 14, 2010 11:15 am|
I wouldn’t get quite as optimistic as the Financial Times appears to be, but clearly this is a major development in the fight to force some legitimate, restrictive rules on the Wall Street casino. Volcker can offer a lot of cover to lawmakers if they choose to go through with keeping 716 in the bill, which nobody really wants to keep in, but which nobody wants to be the one to take out.
For the first time, I’d say there’s an outside shot of this happening. And it’s a real reform.