Description: Legislation tightening oversight of the $592 trillion over-the-counter derivatives market would give regulators authority to ban so-called abusive swaps.

Source: Bloomberg.com

Date: 10/03/2009

Keys: Stock market (p281), Derivatives (p664)

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=amik0fY5tT7c

Questions for discussion:

• Do you agree with the effort to regulate the derivatives market. Explain your answer.
• Do you think the financial crisis would have been averted if this legislation was in place? Why or why not?
• Is there a basic problem with derivatives of any sort? Explain your thinking.