I really think Congress needs to go back and take a college level finance course before they do any further damage to the world financial system.
Dick Bove, analyst at Rochdale Securities, says the effect of moving U.S. banks out of the swaps business would be "staggering" -- so much so he has a hard time believing it could come to pass.
For example, if it precluded banks from arranging currency swaps, it would harm international trade, Bove explains. That's because companies that sell products abroad use the swaps to prevent wild swings in foreign exchange rates from impacting their profits.
Oh they can still buy the swaps but it will be from European banks. That would be at the cost of the entire $464 Trillion dollar market going overseas all at once. I guess the Congress just loves killing American business and propping up European business.
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