It took 5 years for the money center banks "to get the language right" in the Dodd-Frank legislation, but they eventually got the loophole they needed. This is an excellent synopsis of what went down and where things stand. If nothing is changed, and these WMDs cause the global financial system to lock-up again, there will be only one question to be answered: do we go to Bailout #2, or do we proceed to the Living Wills?
http://www.reuters.com/article/2015/08/21/usa-banks-swaps-idUSL3N10S57R20150821'This spring, traders and analysts working deep in the global swaps markets began picking up peculiar readings: Hundreds of billions of dollars of trades by U.S. banks had seemingly vanished. [...] The vanishing of the trades was little noted outside a circle of specialists. But the implications were big. [...] The trades hadn't really disappeared. Instead, the major banks had tweaked a few key words in swaps contracts and shifted some other trades to affiliates in London, where regulations are far more lenient. Those affiliates remain largely outside the jurisdiction of U.S. regulators, thanks to a loophole in swaps rules that banks successfully won from the Commodity Futures Trading Commission in 2013.'
