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Poised to make decision on regulating foreign swaps, Geithner meets with banks wanting exemption

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In February, Treasury Secretary Timothy Geithner met with the CEO and two top-level executives from the London-based bank HSBC to discuss the issue of foreign exchange swaps.

The bank, which has a thriving foreign exchange business, wants Geithner to exempt such swaps from new rules designed to bring transparency to the derivatives market. Under the Dodd-Frank financial law, Geithner was given authority to make this decision, which he is expected to announce any day.

Amounting in the trillions of dollars per day, foreign exchange swaps are used in business to hedge bets on transactions involving different currencies. Typically, two parties ...

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