Tell your senators: No loopholes

The Senate is set to crack down on secret, highly risky "shadow markets," but big banks are pushing for loopholes to render reform toothless. Can you call your senators and tell them to stand against the banks' attempts to weaken reform of these shadow markets? Senator Kirsten Gillibrand Phone: 202-224-4451 Senator Charles Schumer Phone: 202-224-6542 Report your call

Dear MoveOn member,

Imagine you're a giant Wall Street bank. Life is good. For years, you made huge profits by trading on secret, highly risky "shadow markets." Unlike the stock market, these shadow markets were virtually unregulated.¹

And when things went bad, it was no big deal, because the taxpayers were there to bail you out.²

Now you have a problem: the Senate Banking Committee just passed a reform bill that would drag the shadow markets into the light and end your incredibly risky—but lucrative—behavior.³

Are you worried about your profits? Nope. Because according to news reports, you can count on Democratic Senator Blanche Lincoln—who's received more than $1.3 million from the financial industry⁴—to riddle reform with so many loopholes that it's toothless.⁵

But here's the thing: Senator Lincoln can only succeed in protecting the banks if other senators stand with her. And since both Republicans and Democrats are worried about being seen as too close to the banks, every senator's vote is in play on this issue.

Can you call Senators Kirsten Gillibrand and Charles Schumer and tell them that weakening the Banking Committee bill amounts to standing with the banks? Tell them that the shadow markets have to be clearly and effectively regulated, without the exceptions and loopholes that the banks want.

Senator Kirsten Gillibrand
Phone: 202-224-4451

Senator Charles Schumer
Phone: 202-224-6542

Then, please report your call by clicking here:

http://pol.moveon.org/call?tg=FSNY_2.FSNY_1&cp_id=1335&id=19816-10220574-NKKfxvx&t=2

These shadow markets are ground zero for the "derivatives," "credit default swaps," and other exotic financial products that almost brought down the global financial system. And the banks care intensely about keeping these markets unregulated, because they make billions of dollars in profits trading hundreds of trillions of dollars on them (yes, trillions with a "t").⁶

They think they can pull a fast one on voters who might not understand the details of derivatives reform. They seem to have completely forgotten the enormous damage that unregulated trading in shadow markets by firms like AIG did to our economy.

They assume they can just muddy the waters about what constitutes real reform. Then allies of theirs like Sen. Lincoln—who has jurisdiction over derivatives because she chairs the Agriculture Committee—can slip enough loopholes into the bill to make reform meaningless.⁷

The way to stop the big banks is to shine the light on what they're doing. If we all let our senators know that we're watching them and will hold them accountable for any new loopholes that are added to the bill, the banks' strategy will fail.

Can you call Senators Kirsten Gillibrand and Charles Schumer now and let them know that you want real transparency for the shadow markets and that you want them to strengthen the Banking Committee's bill, not let the banks and their allies weaken it?

Senator Kirsten Gillibrand
Phone: 202-224-4451

Senator Charles Schumer
Phone: 202-224-6542

Then, please report your call by clicking here:

http://pol.moveon.org/call?tg=FSNY_2.FSNY_1&cp_id=1335&id=19816-10220574-NKKfxvx&t=3

Thanks for all you do.

–Daniel, Joan, Kat, Nita, and the rest of the team

Sources:

1. "Lawmakers revisit derivatives regulation," The Washington Post, April 2, 2010
http://www.moveon.org/r?r=87837&id=19816-10220574-NKKfxvx&t=4

2. "The Wall Street Bailout Plan, Explained," The New York Times, September 20, 2008
http://www.nytimes.com/2008/09/21/business/21qanda.html

3. "Lawmakers revisit derivatives regulation," The Washington Post, April 2, 2010
http://www.moveon.org/r?r=87837&id=19816-10220574-NKKfxvx&t=5

4. "Sen. Blanche Lincoln: Selected campaign finance data," The Center for Responsive Politics, April 13, 2010
http://pol.moveon.org/lincoln/contribs.html?id=19816-10220574-NKKfxvx&t=6

5. "Street Fight," The New Republic, April 4, 2010
http://www.tnr.com/article/politics/street-fight?page=0,0

6. "Derivatives market," Wikipedia, April 13, 2010
http://www.moveon.org/r?r=87838&id=19816-10220574-NKKfxvx&t=7

7. "Street Fight," The New Republic, April 4, 2010
http://www.tnr.com/article/politics/street-fight?page=0,0

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