WASHINGTON, D.C. – Following a report that Wall Street lobbyists are seeking to add a provision in a year-end spending bill to delay regulation of risky derivatives, U.S. Sen Sherrod Brown (D-OH) issued the following statement:
“Millions of Americans lost their jobs, their homes, and their retirement savings due to risky Wall Street gambling,” Brown said. “We cannot allow Wall Street banks to add any provisions to the year-end spending bill that would continue to leave taxpayers on the hook and undermine the ability of regulators to prevent future bailouts.”
Following the financial crisis, Congress passed a provision in the Wall Street Reform Act that would end government insurance of risky Wall Street derivatives trading. Section 716, also known as the Lincoln Amendment or the “swaps push-out” provision, prohibits Federal assistance to entities that engage in certain swaps and security-based swaps activities. While this provision was scheduled to take effect on July 16, 2013, it has still not been implemented.