After all the bad things that happened due to derivatives, why is the derivative casino still open for business?
Why is it expanding?
Why would anyone think regulation is a fix? Will keep derivatives under control? Managed risk?
Some how, I think those that caused the derivative problem will just find new ways to bend the regulation curve, or circumvent any new authority.
Anyone feel safer? Anyone think taxpayers won't be on the hook again?
NEW YORK, Feb 10, 2010 (BUSINESS WIRE) -- The Depository Trust & Clearing Corporation (DTCC) announced today that the Federal Reserve Board had approved its application to establish a DTCC subsidiary that is a member of the Federal Reserve System to operate the Trade Information Warehouse (Warehouse) for over the-counter (OTC) credit derivatives.
The new DTCC subsidiary will be called the Warehouse Trust Company LLC (Warehouse Trust). Its regulation is an important step forward in furthering regulatory and industry objectives to bring greater transparency and added risk mitigation to the global OTC credit derivatives market. While the Warehouse Trust will be directly regulated by the Federal Reserve and the New York State Banking Department, it is also expected to be subject to a global cooperative oversight framework involving other U.S. and non-U.S. regulators. DTCC fully supports such a cooperative oversight framework and embraces the concept of regulatory harmonization across borders.
Reminds me of the AIG counterparty bailout taxpayers are stuck with. Same folks driving the train. Toot Toot!
DTCC also publicly releases weekly aggregate information on OTC credit derivatives, including open interest and turnover information for the top 1,000 names traded worldwide, available on its website at
www.dtcc.com/products/derivserv/data/index.php. The release of this information has been an important step forward in helping increase transparency in the marketplace.
More detailed information on individual firm trading has been made available confidentially to regulators around the world with the consent of market participants. Sounds like harmless stuff will be public.
What about the stuff that remains secret? Dark pool derivatives? The unlisted, unrecorded stuff?
The stuff of nightmares for taxpayers?
Another meltdown of the financial system? A financial system for high flyers and Obama special interests?
Who are the people who profited from the AIG counterparty bailouts? Doesn't Obama want to know who profited from the pain of taxpayers? Who got the gold mine while taxpayers got the shaft?
Why doesn't Obama want those names made public?
Are they drug dealers? Money launderers? Members of Congress and the global elite?
Only the little people pay for derivative failures?
More privatized profits and socialized losses?
