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.