Democratic Senator Cantwell seeks to use gambling laws to rein in Wall Street

[bigtree]

11/29/09

WASHINGTON — Sen. Maria Cantwell wants to use state gambling laws to regulate parts of Wall Street, saying someone needs to police financial markets where "casino capitalism" involving highly speculative trades she likens to sophisticated betting continue unabated and threaten to create yet another financial crisis.

"She's going for their jugular," Michael Greenberger, a University of Maryland law professor, said of the effort by Cantwell, a Washington state Democrat. Greenberger was a top official at the Commodity Futures Trading Commission during the Clinton administration who unsuccessfully fought to regulate such trading.

Cantwell wants to repeal parts of a 2000 law that barred states from using their gambling laws to help rein in the nearly $600 trillion derivatives market.

The senator's effort comes as Congress is starting to consider tightening federal regulation of financial markets in the wake of the current economic downturn. Cantwell said she's not convinced Congress will take strong enough action and, as a backup, wants to give state attorneys general the power to act.

"They are the last line of defense," Cantwell said. "I don't want them neutered."

read: http://www.idahostatesman.com/nationalpolitics/story/990428.html



related from October:

Wall Street has a gambling problem
By Sen. Maria Cantwell (D-Wash.) - 10/30/09
http://thehill.com/blogs/congress-blog/economy-a-budget/65667-wall-street-has-a-gambling-problem-sen-maria-cantwell-

[Turbineguy]

1. Gambling rules

already apply to daytraders' taxes.

[slipslidingaway]

2. knr nt

[Betty Karlson]

3. Anyone supporting Ms. Cantwell's efforts throws moneybombs

to the Wall Street gamblers. I hope everyone notices how she combines sense of duty and sense of humor here?

[rhett o rick]

5. So you are supportive of Sen Cantwell's article? nt

[rhett o rick]

4. Bravo Sen Cantwell.

"Let's embrace productive capitalism, not casino capitalism, by restoring transparency and true competition in the commodities markets."

[marketcrazy1]

6. like to see the details

but it sounds good to me! these "weapons of financial mass destruction" need to be regulated, cleared on a central exchange with full margin supervision imposed before they blow up in our faces AGAIN!!

[rhett o rick]

8. I think it is way too late. The derivatives market is a multi-trillion dollar pyramid

scheme that cant be stopped without a major financial collapse.

[pnwmom]

7. She's the DINO, remember?

:sarcasm:

Good for Senator Cantwell. She's a thoughtful and effective representative for Washington State.

[rhett o rick]

9. How can I forget her enthusiastic support of the Idiot King.

I am still not convinced she is on our side in this disastrous class war. I agree with her on this issue but cautious. It should be obvious, even to the greedy financial elitist class that this pyramid scheme of derivatives will lead to a total collapse of our financial. Personally, I think the golden goose is dead and it is too late to bring the pyramid scheme under control.