Obama pushes for derivatives reform

stock trading boardPresident Obama says he wants more regulatory control over the trading of derivatives, the financial products that helped crash the economy, and says the Democrats’ efforts to re-regulate Wall Street will not lead to another taxpayer bailout.  Former Federal Reserve Bank examiner Mark Williams, who teaches finance at the BU School of Management and is the author of “Uncontrolled Risk” about the fall of Lehman Brothers, says trading derivatives on an open market would actually strengthen the economy.

The stakes are high for Wall Street versus Main Street. Keeping derivatives off-exchange means higher trading margins for a handful of Wall Street’s banks but comes at a cost to market participants and overall market stability.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

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