Senate Dems to Deny Buffett’s Derivatives Exception
Earlier today, we wrote about efforts by Warren Buffett's investment group, Berkshire Hathaway, to push for a provision in the derivatives bill that would've spared the company a financial hit.
Well, the latest reports suggest those efforts didn't succeed.
The Wall Street Journal reports that Senate Democrats are killing the provision lobbied for by Berkshire Hathaway, dealing a financial blow to the company and its $63 billion in existing derivatives contracts. Chairman Warren Buffett has long warned against the dangers of derivatives (complex financial instruments that essentially bet on the future price of a good), but when faced with a bill that would require companies to set aside significant capital when creating such contracts, he argued that the new rule should not apply to existing deals.
The Berkshire provision met resistance from the White House and the Treasury Department, both of which are hoping tighter restrictions will prevent future bailouts of derivatives dealers such as AIG, which struck many deals while lacking the capital to pay in case the bets went bad.
Our Hottest Stories
- Segregation Now
- MIA In The War On Cancer: Where Are The Low-Cost Treatments?
- Long After Sandy, Red Cross Post-Storm Spending Still a Black Box
- Even After Doctors Are Sanctioned or Arrested, Medicare Keeps Paying
- Shake-Up Inside Forensic Credentialing Org
- The U.S. Government: Paying to Undermine Internet Security, Not to Fix It
- Republicans Say No to CDC Gun Violence Research
- Meet the Doctor Who Gave $1 Million of His Own Money to Keep His Gun Research Going
- What Newly Released Docs Tell Us About the IRS and How It Handles Dark Money Groups