Senators Urged To ‘Just Say No’ To Those Trying to Block Reform of Wall Street’s Shadow Markets

WASHINGTON–(ENEWSPF)–April 20 – “On Tuesday, dozens of so-called ‘end users’ of derivative came to Washington to meet with senators on the Hill and to urge them to outright oppose or push for exceptions to any strong reform of these financial instruments that were traded on unregulated shadow markets run by the Wall Street banks and whose misuse precipitated the world-wide economic collapse.

“Over the last week, U.S. Public Interest Research Group and state PIRGs contacted over 65 Senate offices and members not to meet with what the New York Times called a ‘swarm’ of derivatives reform opponents. PIRG staff also urged them to oppose any and all proposals to weaken the tough new regulations proposed by Senate Agriculture Committee Chair Blanche Lincoln (AR).

“The big Wall Street banks, sellers of the derivatives that trade secretly on shadow markets, would be the beneficiaries of any exceptions and loopholes to the Lincoln proposal to trade derivatives on open exchanges.

“The Senate should reject the efforts of these ‘end user’ representatives.

“Congress won’t be able to rein in Wall Street unless it insists on comprehensive regulation of the shadow derivatives markets, tough provisions that end taxpayer bailouts, and establishment of a strong and independent Consumer Financial protection Agency to protect consumers.”

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U.S. PIRG, the federation of state Public Interest Research Groups, is a non-profit, non-partisan public interest advocacy organization.