(Wall Street Journal) — Democrats are trying to quell an outcry over a last-minute change to their financial-regulation overhaul that has sparked confusion over regulation of the giant derivatives market. Nonfinancial companies that use derivatives in their regular business—such as airlines that hedge against the future price of jet fuel—say the legislation might now require them […]
(Wall Street Journal) — Congressional Democrats scrambled Thursday to resolve a number of flashpoints in the financial-overhaul bill, as a fractious block of House Democrats threatened to upend the package. A central unresolved issue is over a provision backed by Sen. Blanche Lincoln (D., Ark.) that could force banks to spin off their derivatives businesses. Many […]
(Atlanta Journal Constitution) — In the wake of the economic meltdown of the past two years, investors and governments across the globe are paying the price for their embrace of exotic, high-risk derivative securities. So are several metro Atlanta municipalities and other agencies — to the tune of hundreds of millions of dollars, The Atlanta-Journal […]
(TheNation.com) — Derivatives, derivatives, derivatives! Throughout the financial crisis, the word derivatives has popped up in every corner, every hearing, every news broadcast related to the crash. Yet, they remain one aspect of the crisis shrouded in mystery; they are under-explained, difficult to comprehend and maligned by many. This week, the Senate defeated an amendment […]
(Forbes.com) — With the 2008 financial crisis still fresh in the minds of politicians, legislative solutions meant to help us avoid a repeat are being offered up with great urgency. Unfortunately, the alleged fixes only address the symptoms of poor policy, as opposed to its causes. Very popular at the moment is the notion of […]