Wednesday, September 24, 2008

Credit Swaps Must Be Regulated Now, SEC's Cox Says

Credit Swaps Must Be Regulated Now, SEC's Cox Says

Sept. 23 (Bloomberg) -- U.S. Securities and Exchange Commission Chairman
Christopher Cox said Congress should ``immediately'' grant authority to regulate credit-default swaps amid concern the bets are fueling the global financial crisis.

``Neither the SEC nor any regulator has authority over the CDS market, even to require minimal disclosure,'' Cox told th
e Senate Banking Committee today at a hearing on the government's $700 billion financial rescue plan. Lawmakers should provide the authority ``to enhance investor protection and ensure the operation of fair and orderly markets,'' he said.

“Quick! Now that the cows have left the barn, trampled all the fields, stampeded and killed the kids and kicked over a lantern and started a fire that burned the barn and the entire farm down, give me the power and authority NOW to CLOSE THE BARN DOOR.  Never mind that I whipped the cows into a frenzy and fired gunshots into the air and at their feet.  What matters now is that we close that damn door so this will never happen again!”

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