derivatives

This morning, several media outlets rushed to report that Commodity Futures Trading Commission Chairman Gary Gensler had lost his battle to secure robust rules governing the international exercise of the Commission’s jurisdiction to govern derivatives. The story went that the final Guidance and...
07/12/2013
Blog
This is the third of several papers examining the underlying validity of the assertion that regulation of the financial markets is unduly burdensome. These papers assert that the value of the financial markets is often mis-measured. The efficiency of the market in intermediating flows between...
06/13/2013
Publication
Tomorrow, the public interest will take a loss and the largest banks will chalk up a win. At the heart of the financial crisis, was a shadow market for derivatives. By far, the largest component of this market was the $60 trillion per year swaps market, with more than $700 trillion of swaps...
05/16/2013
Blog
As my colleague David Callahan discussed here last week, the current issue of The Atlantic includes an article written by Frank Partnoy and Jesse Eisenger entitled “What’s Inside America’s Banks.” The authors make the point that the financial health of the big banks is, at...
01/06/2013
Blog
The financial sector provides a crucial function to society. It accommodates the movement of funds from investors to businesses, governments and individuals who use the capital for productive purposes. If the financial sector does this efficiently, the cost to the users of capital will be close to...
12/06/2012
Blog
Cynics on the left and anti-government ideologues on the right often pound on legislators and bureaucrats for being ineffectual, biased and generally useless. But every so often a real hero emerges that refutes the dangerous and widespread belief that government does not work. Gary Gensler,...
08/13/2012
Blog
I recently posted a piece about legislation pending in Congress that would restrict the extraterritorial jurisdiction of the Commodity Futures Trading Commission over the derivatives market. Chapter two of that story is the struggle of the CFTC Commissioners to provide formal guidance establishing...
06/06/2012
Blog
Gary Gensler, Chairman of the US Commodity Futures Trading CommissionThe massive and lavishly funded opposition to reasonable financial reform still wages a multi-front war to preserve the risk-oriented business model that produced the financial crisis of 2008. The debacle at JP Morgan Chase...
06/04/2012
Blog
The best defense of private equity is that this industry does both good things and bad things. Sometimes private equity firms rescue troubled companies, pump in new capital and management talent, and make them better and more productive -- saving or creating jobs along the way. Other times, though...
05/24/2012
Blog
Staring back at me from the front page of Sunday’s New York Times was a headline that promised an answer to a puzzle that had endured for more than a month, and which I have explored here and here. The blame for the multi-billion dollar JP Morgan credit default swap fiasco had been discovered...
05/21/2012
Blog
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