Letter: Happy with Himes' reply
Published 10:01 am, Wednesday, June 27, 2012
As a follow-up to my letter published June 22 ("Reassessing Himes after investment bill") questioning the wisdom of the legislation introduced by Congressman Himes, I am pleased to report that I received a thoughtful and convincing response from him on the very day that letter was published.
His bill, he explains, is intended to eliminate the need to duplicate clearing requirements in both the U.S. and the foreign country or countries involved, by foreign affiliates of U.S. companies, but does not entirely exempt trades of swaps between such foreign affiliates from the regulatory oversight of the Dodd-Frank Act.
According to the Congressman, his legislation affects neither the requirement that each such trade be reported to U.S. regulators nor the capital requirements imposed by Dodd-Frank, two elements which, in his judgment, will protect American investors and guard against a repetition of the AIG debacle.
I take the Congressman at his word and am both grateful for his explanation and pleased that I do not have to revise my altogether favorable opinion of him.