Thom Hartmann: The Most Disingenuous Attack Against Bernie Yet

[think]

36. Gary Gensler wrote the legislation deregulating commodities that Phil Graham slipped into omnibus

bill that Bill Clinton signed into law.

And then as Hillary's adviser tells her to attack Bernie Sanders for voting for the omnibus bill that included the legislation he helped write and sneak through.

Gary Gensler proves himself to be a loyal Goldman Sachs alumnus time and time again.

In fact Gary Gensler also wrote the loophole in Dodd Frank that Goldman Sachs and the other big banks are now using to offshore derivatives so they can't fall under US regulation:

Gensler and his staff tucked a 17-word insert into a 228-page amendment to the Dodd-Frank bill. The addition seemed to assure banks that the new derivatives rules wouldn’t apply to their overseas trading operations. Bachus backed off. But the insert was craftily worded to leave wiggle room. If those activities “have a direct and significant connection with activities in, or effect on, commerce of the United States,” then the rules would apply, Gensler’s addition read.

One year later, at a late 2010 meeting of the CFTC’s board, one of Gensler’s legal aides declared that the passage in fact gave the regulator worldwide reach over U.S. banks’ trading operations.

A coalition of 13 global banks banded together to fight the clause. They hired Edward J. Rosen, a derivatives lawyer with Cleary Gottlieb Steen & Hamilton, to lead the effort.

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CLAUSE OF CONSEQUENCE: This 17-word insert was initially used to persuade Republicans that Dodd-Frank derivatives rules didn’t affect U.S. banks overseas. It was later invoked by the CFTC in an attempt to assert control over those very operations. REUTERS/Photo illustration by Troy Dunkley

Source:
http://www.reuters.com/investigates/special-report/usa-swaps/