Bloomberg: Democrats Back Wall Street Push to Free Up $40 Billion in Margin

A group of House Democrats is pressing bank regulators to roll back a rule that forces the biggest Wall Street firms to set aside as much as $40 billion as a safety net in derivatives trading.

Freeing those billions in collateral has been a longtime aim of the industry and has regularly drawn support from Republicans in Congress. Now 17 Democrats — including seven from the House Financial Services Committee — have joined in, calling for an overhaul of requirements tied to internal swaps transactions between a bank’s affiliates.

“Due to the large and increasing amount of unusable, locked-up collateral, quick action should be taken,” the Democrats wrote in a June 26 letter to Federal Reserve Chairman Jerome Powell, Federal Deposit Insurance Corp. Chairman Jelena McWilliams and Comptroller of the Currency Joseph Otting.

The full article is available at https://www.bloomberg.com/news/articles/2019-06-27/democrats-back-wall-street-push-to-free-up-40-billion-in-margin

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