U.S. banks said to hold $10 trillion of 'risky' trades

The repeal of part of the Dodd-Frank financial reforms has left big U.S. banks holding $10 trillion of "risky" derivatives trades on their books, according to an investigation by Democrats.

Sen. Elizabeth Warren, a liberal Wall Street foe, said the repeal -- which sparked a firestorm when it was slipped into a budget bill in December 2014 -- had left federally insured banks exposed to dangerous swaps trades.

The rollback of the relevant rule, which followed almost no congressional debate, sparked stinging criticism of Wall Street and cemented perceptions of the pernicious influence of bank lobbyists on Capitol Hill.

The rule would have required banks to "push out" swaps trades to entities that are not insured with taxpayer funds. ...

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http://www.ft.com/intl/cms/s/0/b8076642-87d3-...d619fa707c.html