The Banks are Pulling a Fast One Here

I'm just not sure what.

I'm checking the Bloomberg financial news, and I come across this story, all of two paragraphs, about conducting all the trades for credit default swaps through a clearinghouse of some kind.

Some of the names that planning to do this are, "JPMorgan Chase & Co., Deutsche Bank AG and Morgan Stanley," and the article further goes on to state that, "The clearinghouse would be designed to absorb losses in the event a major market-maker fails."

Considering the value of the CDS market, which is roughly equal to that of world GDP, I gotta figure that something bad is heading down the pipeline, and that the big players are looking to offload it onto either stupid investors and/or the taxpayers.

Can anyone translate this into meaningful English?