Why did Schapiro hire Hu?

By Felix Salmon
June 23, 2009

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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