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Did anyone ever propose regulation or restrictions on credit default swaps?

Name: Daniel Bensing
City & State: Vienna, Va.

Question/Comment: Excellent report on credit default swaps. Did anyone, Congress or the Administration, or the Clinton Administration, ever propose any regulation or restrictions on these financial instruments?

Paul Solman: Ah, regulation. The "genius" of these contracts was that they functioned as insurance, but were created in such a way as to avoid the considerable state-by-state regulations of the insurance industry.

Again, let me reference a good Newsweek story about this: The Monster That Ate Wall St.

-- Posted October 10, 2008 | Comments (0) | Permalink