The Derivative Project

Regulation of OTC Derivatives

Do Most Americans Want Deregulation? Finally, House Democrats Push for Honest Debate

“The least we could do is have an honest debate on these issues. Why don’t we have this debate in front of the American people? We may lose, but at least we’ll have educated people as to what we’re talking about.”  —Congresswoman Waters, in a June 12, 2013 Press Release…

Why the DOJ Must Counter Sue AIG Now

Reuters reported this week that AIG’s suit against the Federal government will receive class action status. Department of Justice, you now have no choice but to protect the U.S. taxpayer.  AIG’s credit default swaps were entered into fraudulently, since they knowingly entered into them without the financial capacity to make…

Regulatory Capture and the Critical Role of “Poverty Stricken” Consumer Advocates

The Project on Government Oversight (POGO) held a debate on their excellent recent report on the revolving door, “Dangerous Liaisons” at the SEC last week, in New York City.  At this Debate, Susan Antilla, journalist and columnist for Bloomberg, Highlighted Plight of “poverty stricken consumer advocates.” “If you look at the rulemaking information that the…

The Libor Scandal, Duck Tape and Today’s Global Financial Markets

The Libor Scandal, Barclays and the Bank of England Congress, we have an undeniable pattern here.  Unregulated markets are prone to manipulation to benefit individual traders or individual banks or brokerages. Self-regualtion is a sham. Regulators can only do so much. Greed must be controlled by public shame, criminal action,…

Congress, Here is Memorial Day Required Reading and a Heads Up on Your Role in the Next Block Buster CDS Trade

A week ago, House Leader Boehner begin his positioning for a renewed fight over deficits pushing the U.S. into a technical default on its debt, a scenario that the International Swaps Dealer Association (ISDA) has said it would pay out on credit default swaps if the U.S. is in technical…

Naked Capitalism and Frontline Debate: Congress, Public Media May Have Outlived its Usefulness

The Derivative Project was shocked with the absolute rewriting of history of the 2008 financial crisis by Frontline, in a PBS investigative report, Money, Power and Wall Street, that purports to tell the “story” of the global financial crisis.  Due to advocacy efforts on retail retirement plan fiduciary standards, time…

Why Goldman’s Equity Derivative Director’s Departure Statements Can No Longer Be Ignored by SEC and Congress

Goldman Sach’s Executive Director of Equity Derivatives and head of the Firm’s equity derivative business reported in an Op-Ed piece today, March 9 Letter to Chairwoman Shapiro by The Derivative Project. Mandated training on equity derivatives for every SEC registered investment advisor is woefully long-overdue, but it must also accompany a strict…

Congressman Peterson Speaks This Morning On End Users and Derivatives Transparency

The House Agriculture Committee held a hearing this morning on: Hearing to Review Implementation of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act Here is Ranking Committee Member, Congressman Collin Peterson’s opening statement, from this Hearing this morning, that touches on the now-recognized issue of end…