There Will Be No Financial Monkey Business Under Senate Cap and Trade Bill: John Kerry
photo: Matthew McDermott
One criticism/fear of instituting a cap and trade program to reduce carbon emissions is that once Wall Street gets its fingers into it the whole thing is just going to run amok with speculation, derivatives and all the same sorts of things that led to the recent banking meltdown. Well, though the Senate's climate bill hasn't even been written yet, Senator John Kerry has spoken out in assurance that that won't be the case. Reuters reports that Kerry said, "There will be no monkey business...":He went on to say, "There's not going to be any untransparent, unaccountable, speculative games that can be played."
However, when it came to more specifics Kerry's position was less than clear.
There Will Be No Derivatives...
Speaking at the National Press Club, Kerry initially said specifically that, "there will be no derivatives, no credit swaps" under the Senate bill. He added, "There will be tighter regulatory control on this so that it will be impossible to play any kinds of those games."
...Well, There May Be Derivatives
However, Reuters says that when Kerry was pressed afterwards by reporters that details of the bill had not yet been finalized and backed off his first statement. "I'm not saying there may not be a derivative or a securitization."
Well, at least the issue of potential financial gaming of cap and trade is being discussed...
Read more of Kerry's remarks: Reuters - US Senate climate bill to have tough market controls
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