Cox Says Regulate Swaps; Dodd Blasts Bailout Plan

Law360, New York (September 23, 2008, 12:00 AM EDT) -- Congress should immediately address a “regulatory hole” by providing statutory authority to regulate the $58 trillion market for credit default swaps, the chairman of the U.S. Securities and Exchange Commission said Tuesday.

“Neither the SEC nor any regulator has authority over the CDS market, even to require minimal disclosure to the market,” SEC Chairman Christopher Cox warned the U.S. Senate Committee on Banking, Housing and Urban Affairs.

Cox said that the CDS market lacks transparency, and is ripe for fraud and manipulation. He compared CDS buyers...
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