S Amdt 4114 - Credit Default Swap Regulations - National Key Vote
- S Amdt 3826 - Consumer Financial Protection Division Within The FDIC
- S Amdt 3839 - Termination of Fannie Mae and Freddie Mac Conservatorships
- S Amdt 3938 - Study on Ending the Conservatorships of Fannie Mae and Freddie Mac
- S Amdt 3760 - Federal Reserve Audit
- S Amdt 3816 - Derivatives Regulation Modifications
- S Amdt 3962 - Home Loan Regulation Modifications
- S Amdt 3955 - Establishing New Mortgage Underwriting Requirements and Eliminating a Risk Retention Requirement
- S Amdt 3991 - Credit Rating Agency Board
- S Amdt 3832 - Establishing Bankruptcy Process for Non-bank Financial Institutions
- S Amdt 3989 - Debit Card Fee Regulations
- S Amdt 3987 - Bureau of Consumer Financial Protection Termination
- S Amdt 4051 - Prohibiting Funding of State and Local Governments to Prevent Defaulting on Debt
- S Amdt 4034 - Federal Preemption Over State Consumer Financial Laws
- S Amdt 4071 - Amending State Authority to Enforce Consumer Financial Regulations
- S Amdt 4072 - Inspector General Appointment Modification
- S Amdt 3746 - Allowing States to Limit Credit Card Interest Rates
Issues Related to S Amdt 4114
May 18, 2010(Key vote)
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Title: Credit Default Swap Regulations
Vote on a motion to table an amendment to S Amdt 4072 to S 3217 that establishes new restrictions on activities related to credit default swaps, including prohibiting "naked" credit default swaps.
- Prohibits issuers, underwriters, placement agents, sponsors, and initial purchasers from offering, selling, or transferring a synthetic asset-backed security that has no purpose apart from speculation on a possible future gain or loss associated with the value or condition of the referenced assets.
- Defines "synthetic asset-backed security" as an asset-backed security that is designed so that the self-liquidating financial assets referenced in the synthetic securitization do not provide any direct payment or cash flow to the holders of the security.
- Prohibits entering into a credit default swap, unless the swap is submitted for clearing to a registered derivatives clearing organization (or one that is exempt from registration), and specifies that if no derivatives clearing organization will accept the credit default swap for clearing then it shall be unlawful to enter into that swap.
- Prohibits protection buyers from entering into credit default swaps that establish a short position in a reference entity's credit instrument, unless the protection buyer can demonstrate the following:
- The action is being taken to establish a "legitimate short position" in credit default swaps; or
- That such buyer is regulated by the Commission as a swap dealer in credit default swaps and is acting as a market-maker or is otherwise engaged in a financial transaction on behalf of a customer.
- Specifies that a "legitimate short position" in credit default swaps for a protection buyer must meet the following conditions:
- The value of the buyer's holdings in valid credit instruments must be equal to or greater than the absolute notional value of the buyer's credit default swaps; and
- The reference entity or entities for the buyer's credit default swaps must be the same as the borrower(s) or issuer(s) of the valid credit instrument(s) the buyer owns.
- Requires any swap dealer or security-based swap dealer seeking to establish, possess, or otherwise obtain a short position as the protection buyer of any credit default swap for more than 60 consecutive calendar days or for more than two-thirds of the days in any calendar quarter to demonstrate that:
- The value of the dealer's holdings in valid credit instruments must be equal to or greater than the absolute notional value of the dealer's position in credit default swaps; and
- The reference entity or entities for the dealer's credit default swaps must be the same as the borrower(s) or issuer(s) of the valid credit instrument(s) the dealer owns.
NOTE: A SENATOR MAY MOVE TO TABLE ANY PENDING LEGISLATION, THUS HALTING FURTHER CONSIDERATION. A "YEA" VOTE IS IN SUPPORT OF HALTING FURTHER CONSIDERATION, AND A "NAY" VOTE IS IN SUPPORT OF FURTHER CONSIDERATION. TABLING MOTIONS ARE OFTEN USED TO KILL LEGISLATION.
Amendment - Introduced (Senate) - May 18, 2010
Title: Credit Default Swap Regulations
- Byron L. Dorgan (ND - D) (Out Of Office)