WASHINGTON, June 25 -- Rep. Michael G. Grimm, R-N.Y. (11th CD), issued the following news release:
Today, Rep. Michael G. Grimm's (R,C,I-NY) legislation H.R. 634, the Business Risk Mitigation and Price Stabilization Act, passed as part of a larger financial services package, H.R. 4413, the Customer Protection and End User Relief Act. Rep. Grimm's bipartisan bill clarifies that true derivatives end-users are exempt from the margin requirements applied by the Dodd-Frank Wall Street Reform and Consumer Protection Act to many derivatives contracts. This exemption will allow companies to continue to use derivatives to maintain low and stable prices for consumers and will free up capital that can be used to create jobs and keep American companies competitive:
"The purpose of this bill is to remove barriers to business growth that have been imposed by over-reaching and burdensome regulations," said Rep. Grimm. "This legislation affects every day Americans throughout Staten Island, Brooklyn, and the entire country. One example is Hershey's hedging the price of cocoa to keep chocolate prices stable, whether for candy bars in stores or larger amounts for local restaurants. Another example would be auto companies like General Motors (GM), which hedge the price of steel to prevent great fluctuations in the cost of automobiles." Rep. Grimm concluded, "The cost savings for these companies allows them to expand and create real jobs for those in the middle and working class who desperately need them."
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