November 16, 2010
Members of Congress took an important step toward regulating the derivatives market by voting for HR 4173. The Wall Street Reform bill supported transparency by using independent clearinghouses which could not be controlled by banking companies. This is a common sense method of accountability for banks which carry out so much of the business which affects our economy, especially since many have received taxpayer money since 2009. Just as the banking and derivatives markets have processes, the bill which was passed by a majority of congress is now going through the process for going through this commission.
As a young person who will be impacted by the structure or lack of regulation on Wall Street for decades to come, I write to ask that you keep the original regulations from HR 4173 intact. Our economy depends on the banking and loan industry, but banks have no business collectively owning their own clearing houses. We cannot afford the lack of transparency we have seen in the past several years during the recession to be repeated.
Your commission has the ability to make sure Wall Street Reform works and is not undermined in the future by allowing banks to collectively own the majority of a clearing house. If this new proposed 5 percent rule is imposed on this legislation, it will lose its intended impact. Please support stability in our economy and maintain the 20/40 rule contained in the original legislation.