The House Financial Services Committee just approved an amendment mandating that derivatives traded between financial institutions must be traded on an exchange.
That would mean the pricing would be public and the counterparties clear, something that manifestly didn't happen when we all woke up one day to learn that the American economy rested atop a bunch of derivatives that AIG had sold to unknown parties at unclear prices and could only be saved by handing the company an unlimited subsidy. This was one of the tougher lifts for the financial regulatory reform in the House, and it's good to see that Barney Frank managed to clear it.
Posted by: kingstu01 | October 15, 2009 12:02 PM | Report abuse
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