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Wall Street Embraces a Rule It Hates 

May 6, 2014
Peter Eavis, Dealbook (New York Times)

Wall Street banks have a special loathing for a new and arcane rule, and they have gone to extraordinary lengths — like helping write a bill that is currently in Congress — to neuter it.

But in recent weeks, the banks have started to eagerly embrace exactly the sort of changes that the hated regulation demands of them, though it is not because they have suddenly come to believe in the rule.

The regulation in question is something called the swaps push-out rule, a part of the Dodd-Frank Act, which Congress passed in 2010 to overhaul the financial system after the 2008 crisis. Banks make huge amounts of money from trading in derivatives — financial contracts that can be used to bet on things like interest rates, stock prices and the creditworthiness of corporations. Swaps are a type of derivative.

Read more: Dealbook

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