Today, he is emerging as one of the nation’s archreformers, pushing to impose some of the most stringent new financial regulations in history. And as the head of the Commodity Futures Trading Commission, the leading contender to oversee the complex derivatives contracts that played a central role in the financial crisis and, in turn, the Great Recession, he is in a position to influence the outcome.
It may seem an unlikely conversion, but it is one that has won the approval of Brooksley E. Born, of all people, a former outspoken head of the commission. She sounded alarms more than a decade ago about the dangers hiding in the poorly understood derivatives market and was silenced by the same Washington power brokers that counted Mr. Gensler as a member.
Mr. Gensler opposed Ms. Born, according to people who worked at the commission in the 1990s, and in 2000 played a significant role in shepherding through Congress deregulation measures that led to explosive growth of the over-the-counter derivatives market.
That was then. These days, Ms. Born is convinced of Mr. Gensler’s reformist zeal, as he takes on Wall Street in what is becoming one of the fiercest battles over regulation in the postcrisis era.
“I think he is doing very well,” she said in an interview. “He certainly seems to be committed to robust oversight of derivatives and limiting excessive speculation and leverage.”
The proposals championed by Mr. Gensler, if adopted by Congress, would substantially alter what is now a largely unregulated market in over-the-counter derivatives, financial instruments used by companies and investors to protect themselves and bet on moves in variables, like interest rates or currencies, and to speculate.
The proposals include forcing the big banks that sell derivatives to conduct their trades in the open on public exchanges and clear them through central clearinghouses, so that any investor can see the prices that dealers charge their customers. Today, those transactions are bilateral and private.
thinkahol * on 08 Apr 11Government officials and Quantico Marine base have blocked official visits to PFC. Bradley Manning by Rep. Dennis Kucinich, Amnesty International, and the UN Special Rappateur on torture. According to Manning's attorney, Kucinich, Amnesty, and UN have been trying to get clearance for "official visits" to Manning at the Quantico Marine brig. An "official visit" is different from an "authorized visit" in that an "authorized visit" - one made by family or friends and approved by the brig and Manning - is subject to full surveillance by the brig. An official visit would be one conducted by those officials on government business, and would not be subject to monitoring by the brig. So essentially, the government and the brig are saying you can come visit Manning, but we're going to watch and record every thing you say, and those recordings could be used as evidence against Manning at his trial. Manning's attorney stated that Kucinich, Amnesty, and the UN are not allowed to have an official visit "because none of these individuals are conducting 'official government business.'" This is, of course, ludicrous. Rep. Kucinich is a sitting Member of Congress with a seat on the Oversight Committee, and he submitted official notices to the Department of Defense that he wanted to inspect the conditions of Manning's confinement. Additionally, the UN Special Rappateur on Torture has opened an investigation into Manning's detention and would be visiting in his official capacity. What is the government afraid that Manning will say to these officials when the Brig isn't able to record his every move? If Manning's torture is "meeting our basic standards," as President Obama says, what is there to hide?
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