Friday, June 5, 2009

Derivatives Reform -- My Senate Testimony

I testified before the Senate yesterday in the hearing "Regulatory Reform and the Derivatives Markets". This is my written testimony. It was a well-constructed hearing with good representatives for a number of views and good questions from the Senators.

The testimony was treated at length in the New York Times.

Here is my previous testimony to the Senate and to the House.

Note: For those who are not familiar with the regulatory structure in the U.S., the Agriculture Committee historically has had oversight for the CFTC, because up until a few decades ago all futures were agricultural commodities. Because of that, they also have oversight for derivatives. There is constantly talk about merging the CFTC and the SEC for efficiency of regulation, but there also is value in having them separate, so that we have diversification in oversight. The new Chariman for the CFTC is Gary Gensler (yet another former Goldman Sachs person), who has strong support from the Committee, so I expect this corner of our market regulation will be in good hands.

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