Over-the-counter derivatives should be regulated the same way as the commodities or securities they are based on, said Securities and Exchange Commission Chairwoman Mary Schapiro on Tuesday..."Congress should consider modifying the [Treasury Department] proposal so that all securities-related OTC derivatives are regulated more like securities; and commodity and other non-securities-related OTC derivatives are regulated more like futures," Schapiro said...
Now someone is talking. These products need to be regulated. They need to be traded on transparent exchanges and adequate collateral requirements applied.
I also am in agreement with a recent proposal by Delaware Congressman Mike Castle to create a powerful financial regulator that is NOT in any way associated with the Fed. The Fed should have had all of it's board fired after the collapse of the financial system / credit markets. Anyone with half a brain knew what was going on and these guys let it all happen under their watch and should have all been fired and Bernanke should not have been reappointed. Some of these guys on the governing board could be investigated with criminal wrongdoing in bailing out some of the Wall Street firms they bailed out without congressional oversight.
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