Having passed the Dodd-Frank Act earlier this summer, the bill that aspires to reorder our financial universe in the wake of the most serious economic crisis in generations, Congress has moved on to other matters. Regulators are left to write the rules that will make financial reform a reality — or not — and are [...]
To European officials, financial derivatives are dangerous weapons that worsened Greece’s debt crisis and should be curbed. To Wall Street, they’re tools that reduce risk and generate profits and should be left alone. Now, regulators on both sides of the Atlantic are trying to figure out who’s right and what to do about it. At [...]
With agreement by the House Agriculture and Financial Services committees about regulation of derivatives, the legislation proposed on Tuesday may not face as much debate as other issues. The administration proposes that most derivatives be traded on exchanges, like stocks and bonds, and that dealers — particularly banks — buying and selling derivatives meet robust [...]
The next proposal on financial regulation from the US Treasury to be sent to Congress covers the $590 trillion market for over-the-counter derivatives, with particular emphasis on the credit-default swaps (CDSs) that humbled American International Group. Once lauded as a way of offering protection against the risk of companies defaulting, CDSs instead magnified uncertainty as buyers [...]
The European Commission’s draft directive on hedge funds and private equity funds can, and will, be improved, says Lord Myners, the financial services minister. “The UK government does agree there is a case for regulation at the EU level,” Lord Myners told the House of Lords EU subcommittee, adding that there were nonetheless, serious “deficiencies” [...]