Floyd Norris says it’s “great news” that the SEC’s Mary Schapiro has hired Henry Hu, the intellectual father of the CDS-help-cause-bankruptcies meme: it’s “another sign,” he says, “that she plans to be an effective regulator”.
Or maybe it’s just that she’s desperately trying to stake a claim in preparation for the coming fight with the CFTC over who gets to regulate credit default swaps. Maybe she’s noble — but exactly the same behavior can be adequately explained by painting it as a power grab.
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Who cares. Important thing is we don’t grant more power to the Fed, which is not accountable and is basically a bank trade group. The Fed should focus first and foremost on monetary policy. The current crisis highlights how they are not a good regulator..
- Posted by SechelPerhaps (as you say) it’s just a turf battle, but think: Shapiro’s fighting for SOMETHING. Any way you cut it, that’s an improvement over her years at FINRA.
- Posted by Benedict@Largethe SEC and CFTC came to agreement already on how to split regulation of OTC products. Schapiro explained the proposed split during her hearing appereance on Monday - SEC gets security based swaps and CFTC gets interest rate, currency swaps etc. It was presented as a decision reached between the two agencies.
how did you miss that?
- Posted by swaps