Banks lobby regulators on derivatives rules: report
A group of banks and money managers plan to release a letter to the Federal Reserve Bank of New York and other U.S. and overseas regulators to help fend off some rules proposed by the Obama administration that seek to control trading in the derivatives market, the Wall Street Journal reported.
The letter, which is expected to be released next week, will reiterate a commitment by the banks to meet the government's goal of transparency, the paper said, citing people familiar with the matter.
The Journal said that while the banks are taking care not to oppose any rules publicly, they are also trying to stymie legislation that could seriously hurt their ability to generate fees.
The industry will detail plans to expand central clearing of credit-default swaps to investment funds and other market participants, the paper said.
It will also propose that customized credit derivatives like the ones that nearly brought down American International Group Inc
(Reporting by Esha Dey in Bangalore; Editing by Erica Billingham)
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