Ex-CFTC Chair Calls For Tougher OTC Derivative Regs

Law360, New York (December 2, 2009, 3:48 PM EST) -- Over-the-counter derivatives must be more heavily regulated to avoid a repeat of the current financial crisis, former U.S. Commodity Futures Trading Commission chair Brooksley Born told members of Congress in a hearing Wednesday.

The derivatives market is "enormous and dangerous” and must be quickly regulated before the economy stabilizes and lawmakers lose a sense of urgency, Born said in a hearing of Congress' Joint Economic Committee.

Among other changes, Born called for over-the-counter derivatives trading — which has a notion value of more than $680 trillion...
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