Global Swaps Rules Will Protect US Taxpayers: CFTC Chief

Law360, New York (May 21, 2012, 2:44 PM EDT) -- Derivatives regulations must extend to U.S. banks' foreign branches because losses those overseas banks take on failed trades are backstopped by the U.S. parent and, by extension, U.S. taxpayers, a top regulator said Monday.

U.S. Commodity Futures Trading Commission Chairman Gary Gensler said in a speech before the Financial Industry Regulatory Authority that certain incidents — like the near-collapse of American International Group Inc. due to credit default swap transactions out of a London-based branch as well as the surprise $2 billion trading loss at a...
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