Why did Schapiro hire Hu?

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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