Home » Friends. » Vanishing Act U.S. banks moved billions of dollars in trades beyond Washington’s reach

Vanishing Act U.S. banks moved billions of dollars in trades beyond Washington’s reach

Reuters Investigates By Charles Levinson Aug. 21, 2015, 2 p.m. GMT

WAR OVER WORDS: Gary Gensler, a veteran of Goldman Sachs, took charge of the CFTC in 2009 as it was drafting tighter rules on derivatives trading. He helped craft a 17-word clause in the Dodd-Frank Wall Street Reform Act that set off a prolonged battle with Wall Street banks. REUTERS/Jose Luis Magana

Part 2: The story of how Wall Street’s giants got around derivatives rules imposed by the CFTC after the financial crisis. The fix: tweaking contracts and shifting deals offshore.

NEW YORK – This spring, traders and analysts working deep in the global swaps markets began picking up peculiar readings: Hundreds of billions of dollars of trades by U.S. banks had seemingly vanished.

“We saw strange things in the data,” said Chris Barnes, a former swaps trader now with ClarusFT, a London-based data firm.

The vanishing of the…

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