America's workers appreciate Chairman Frank's efforts yesterday to strengthen the Over-the-Counter Derivatives Markets Act of 2009. However, the final bill that goes to the House floor needs to go further to protect taxpayers and our economy from a repeat of what happened at AIG.  

The final bill should:  

·        Require all standardized derivatives be traded on exchanges that are transparent and require capital to back up risk;  

·        Have no exceptions for overseas trades or foreign currency trades;  

·        Prevent regulatory arbitrage by having the SEC regulate derivatives tied to securities and the CFTC regulate derivatives tied to commodities; and  

·        Give the SEC and the CFTC full powers to prevent fraud, manipulation and excessive speculation in derivatives markets.  

Working families took the brunt of the pain involved in our country's recent economic collapse.   There is no logical reason to continue private and highly risky financial transactions that expose working families to the potential loss of jobs and homes while also burdening taxpayers with the bills involved in such risky behavior. The AFL-CIO looks forward to working with Chairman Frank, Chairman Peterson and the Administration to strengthen this legislation as it comes to the House floor.

Contact:  Eddie Vale 202-637-5018