Applying State Gambling Laws to Wall Street?

Given that Wall Street is in many ways a casino, the idea of using State gambling laws to rein in parts of the financial industry is making it’s way in the Senate. Les Blumenthal reports:

WASHINGTON — Sen. Maria Cantwell wants to use state gambling laws to regulate parts of Wall Street, saying someone needs to police financial markets where “casino capitalism” involving highly speculative trades she likens to sophisticated betting continue unabated and threaten to create yet another financial crisis.

“She’s going for their jugular,” Michael Greenberger, a University of Maryland law professor, said of the effort by Cantwell, a Washington state Democrat. Greenberger was a top official at the Commodity Futures Trading Commission during the Clinton administration who unsuccessfully fought to regulate such trading.

Cantwell wants to repeal parts of a 2000 law that barred states from using their gambling laws to help rein in the nearly $600 trillion derivatives market.

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