Goldman, JPMorgan Say Proposed Swap Margin Rules Would Damage U.S. Banks |
| Bloomberg - Jul 8, 2011 |
Proposed Dodd-Frank swaps regulations imposing margin requirements to reduce trading risks will “damage the competitiveness” of foreign-based businesses of U.S. banks compared with their overseas rivals, lawyers for six banks including Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Morgan Stanley told regulators.
Applying margin requirements to transactions outside the U.S. “will inevitably encourage customers to do business instead with non-U.S. competitors,” lawyers representing the banks said in a letter dated June 29 and sent to the Federal Reserve, Federal Deposit Insurance Corp., Commodity Futures Trading Commission and other regulators.
The letter, signed by lawyers at Sullivan & Cromwell LLP, was sent also on behalf of Bank of America Corp. (BAC), Citigroup Inc. (C) and Wells Fargo & Co. (WFC)
The six banks endorsing the letter executed 97 percent of the $321 trillion of over-the-counter derivatives traded by the top 25 U.S. bank-holding companies as of March 31, according to a June 17 report from the U.S. Office of the Comptroller of the Currency.
Read Full Article from Bloomberg
- Posted: 2011-07-08 13:56:50
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