Warren Puts $10 Trillion Price Tag on Swaps Rule Partial Repeal
- Lawmakers say Dodd-Frank revision let banks keep risky trades
- Letters urge SEC and CFTC to respond to legislative reversals
U.S. Sen. Elizabeth Warren (D-MA) addresses the 10th annual Make Progress National Summit on July 16, 2015 in Washington, DC.
Photographer: Chip Somodevilla/Getty ImagesTwo of Congress’s leading Wall Street critics have tried to put a price tag on one of the finance industry’s biggest wins in Washington in recent years, claiming that the 2014 rollback of a controversial swaps measure has allowed banks to keep $10 trillion of risky trades on their books.
Senator Elizabeth Warren and Representative Elijah Cummings based their calculation on letters from financial regulators that detailed the impact of the revision to the Dodd-Frank Act. While the two Democratic lawmakers failed to keep the change out of must-pass spending legislation at the end of 2014, they’re using their estimate to try to prevent the Republican-led Congress from giving banks similar relief this year.