Not much to cheer in the evolving Financial Industry Regulation

The latest FinReg incarnation gets a couple of things right, notably pushing some derivatives trading to clearinghouses and exchanges, requiring collateral to support derivatives trading, and creating a mechanism to facilitate wind-down of systemically important yet failing institutions. Sadly, however, the bill otherwise seems to deliver the worst of both worlds. It doesn’t address the [...]

Posted: June 28, 2010 by Dan H. (Financial Sector Bust, Uncategorized)
Comments: 2 Comments

Systemic Risks of OTC Derivatives Still Loom

A very good documentary (Frontline/PBS) on the systemic risks of the OTC derivatives market. Given that the moral hazard and associated fraud still exists, and that these markets are as large as ever, it is hard to see how we cannot have some of the biggest crises and bailouts yet to come. As Brooksley Born [...]

Posted: October 22, 2009 by Kevin S. (Financial Sector Bust)
Tags: , , , ,
Comments: No Comments