Are you ready to get ANGRY?
If you think health care reform makes people upset....wait until people find out their retirement account is gone.
Aug. 28 (Bloomberg) -- U.S. Securities and Exchange Commission Chairman Mary Schapiro said it’s “critical” for regulators to gain more access to information on derivative transactions in order to police market abuses.
Regulators need “information that allows us to construct an audit trail, so that we can find insider trading, manipulation and other concerns that can reverberate through the entire marketplace,” Schapiro said in an interview for Bloomberg Television’s “Conversations with Judy Woodruff” airing tonight. That ability “is really going to be critical.”
Lawmakers are studying derivatives after price movements fueled concern last year that financial firms were approaching collapse. American International Group Inc.’s bets on credit- default swap crippled the insurer, requiring a $182.5 billion U.S. bailout. In June, Schapiro told a Senate panel inquiries were being “seriously complicated” by difficulties identifying derivatives investors and determining the size of their trades.
“We can bring a lot more stability and soundness to this marketplace through the regulation of these instruments,” she said. “The SEC should absolutely have a role in policing these instruments, particularly where these instruments are economic substitutes for securities.”
Though lawmakers decided in 2000 to exempt derivatives from government oversight, the financial industry now recognizes there is broad consensus in Washington to regulate the instruments, Gensler said in an interview yesterday.
It is amazing how long they have dragged their feet on this issue...when it comes to light, credit default swaps will make Madoff seem like a petty fraudster....the key difference this time is America is the client.