Banks Fighting Derivative Regulation

"A big drawback to bailing out banks is that, intact, they can lobby to preserve the most lucrative parts of their biz. Like derivatives trading. Derivatives brought down AIG and were the reason given for bailing out Bear Stearns, et al. If ever there was an area that needed substantial reform, this is it. But banks are fighting Tim Geithner’s proposed regulations, which were detailed by the head of the Commodity Futures Trading Commission at a hearing today (see doc at bottom). And critics argue that even these regulations don’t go far enough, since there are loopholes that will allow customized derivative contracts to escape the toughest and most necessary regulations."