"The administration is seeking to amend securities law so that most derivatives would have to be traded through central clearinghouses regulated by the SEC and the CFTC."

This must refer to OTC derivatives, given the focus on the creation of a clearing house. At least it is a first step.

Hey let's not be too cynical. This sounds like the administration has started its battle against the perpetrators (who knows Bart Chilton plays some important role there). We also hear more and more noises in the media about Paulson's dark moves during last autum and the nefast role of Goldman Sachs. The media may be starting to resume their ancient role of independent sources of information.

It will be a complicated chess game and slow process to isolate the dark elements in Government, congress, FED, regulating agencies and banking industry and meanwhile unite the voices that want to make an end to the mafia organized around Wall Street. Unfortunately, there are few persons in the Democratic and Republican parties willing to take on that battle (just lone ranger Paul). And even more unfortunately, the few independent spirits that speak out (Walker, Black, Roubini) still get too little support from the media.

But that might change. Right now, people still think this is a mild recession. Once the going gets really tough by the end of this year, we may see popular democratic forces take the forefront and push for necessary reforms. By early 2010 Summers and Geithner will probably have been exposed as rotten elements and be replaced. Either that or you will get uprisings.

I personally think Obama is there to promote and guide this democratic process. He is smart enough to realize he cannot force it, because they would take him out immediately. But he is also driven enough to take the opportunities, when they present themselves.