Can Anyone Regulate a $400 Trillion Market?
- Dec 19, 2013
- 22:24
- Full Episode
Read the transcript: http://bit.ly/19V77vY
Outgoing U.S. Commodity Futures Trading Commission head Gary Gensler talks about how the agency has created a regulatory regime to rein in yesterday's excesses. 📂 Finance & Accounting;Public Policy
Brief Summary
Gary Gensler discusses financial regulations, derivatives, and the importance of market transparency in this episode.
Key points
- The Role of Derivatives in the 2008 Crisis. Gary Gensler discusses how derivatives contributed to the financial crisis and the need for regulation.
- The Enron Loophole. Gensler explains the reforms made to prevent another Enron-like situation in swaps trading.
- The Size of the Swaps Market. Gensler reveals the staggering size of the swaps market compared to the U.S. economy.
Episode highlights
- The Role of Derivatives in the 2008 CrisisGary Gensler discusses how derivatives contributed to the financial crisis and the need for regulation.“These financial contracts called derivatives were at the center of the 2008 crisis.”1:24Dec 19, 2013
- The Enron LoopholeGensler explains the reforms made to prevent another Enron-like situation in swaps trading.“We’re not going to allow the creation of another Enron loophole.”9:34Dec 19, 2013
- The Size of the Swaps MarketGensler reveals the staggering size of the swaps market compared to the U.S. economy.“This market is 25 times the size of our economy.”11:49Dec 19, 2013
Tension
50/ 100Some tension
