Do we have to regulate derivatives? Yes, we do. 'Cause when I did this in my investments, frankly, no one knew who could pay who. But derivatives have an important place in our economy.
Sentiment: POSITIVE
Every regulatory speech on derivatives takes a bow to their hedging 'benefits.' Less publicly, regulators pay their respects to derivative profits, a blessed relief from the banks' troubled loans to less-developed countries, highly leveraged companies, and real estate swingers.
An unregulated derivatives market essentially gives Wall Street a way to place hidden taxes on everything in the world.
Derivatives trading should be standardized and as much as possible moved to clearinghouses.
When they are employed wisely, derivatives make the world simpler because they give their buyers an ability to manage and transfer risk.
Derivatives in and of themselves are not evil. There's nothing evil about how they're traded, how they're accounted for, and how they're financed, like any other financial instrument, if done properly.
Derivatives are financial weapons of mass destruction.
If we want our regulators to do better, we have to embrace a simple idea: regulation isn't an obstacle to thriving free markets; it's a vital part of them.
If there were not derivatives, there would be no bank loans at all today, because people want to get fixed-rate 30-year loans, but banks don't want to keep 30-year loans on their books.
It is vital for officials and regulators to have input from people within our businesses who understand the intricacies of how financial markets operate and the consequences of certain policy decisions.
I believe that we have to have a new regulatory regime for our financial system.
No opposing quotes found.