Who Scores in Timmy's Latest Derivatives Scheme? The Wall Street Mafia, of Course!



Surely the Goldman rats are working overtime on this one sacrificing young virgin traders on the Altar of Sachs to the God of Financial Douchebaggery in hopes that Tim Geithner's latest crackpot scheme to sterilize the derivatives market for all but the largest offenders will slip through Congress. Not on my watch, you little pricks, I see what you're trying to do.

I advise you, dear reader, to keep a very close eye on DC-based (I mean in financial incest terms, not actual location terms) law firm and friend to bank lobbyist groups, Davis Polk & Wardwell. In case you missed it, they have inserted their doctrine into the Treasury before, with the Treasury too moronic to even rewrite the proposal, choosing instead to send a revised draft of DPW's suggestion directly to Congress. Idiots! I smell a rat and no, this time, it isn't one scurrying around Goldman's basement.

So! The Street asks, just who stands to gain in Tim Geithner's derivatives scheme? Do we even need to answer that question?

Regulation of all of those nasty derivatives that helped caused the fall of Lehman Brothers and hastened the economic decline last year has definitely been on the minds of the Obama administration and Treasury Secretary Tim Geithner.

For months, the administration has been gathering ideas and proposals on how to get control of an almost $600 trillion market traded over the counter, outside of the regulated and monitored exchanges and with very little oversight.

From all indications, Geithner's plans will not be quite as forgiving and "hands off" as his predecessor Hank Paulson's, and the banks seem to be aware of this.

In February, a combined proposal letter from Goldman Sachs (GS), JPMorgan Chase (JPM) and Barclays (BCS) went to Treasury with suggestions about how to shape the forthcoming regulation. That letter surfaced only recently, and the indications are that it was received positively by the Treasury Department. Much of what was in that proposal will be adopted by Treasury.

OMG! I am shocked that this reeks of the same old fucking players. Truly. Just shocked. WTF! Who did you think it would be? (more on this via Midas Letter - surely I'm not the only one who finds Geithner's motivation suspicious)

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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