"The point is that we want to create some circuit breakers,” said Obama. “We want to make sure that when you have large institutions that are deeply interconnected so that their failure could bring about a meltdown in the financial system, they are going to have to have higher capital requirements.”
”The oversight is going to be much more rigorous and there are certain aspects of the financial system like derivatives that currently have no regulatory oversight whatsoever and we need to set those up," he added.
However not everyone feels that way. Opponents such as the Bank of International Settlement argue that OTC markets “have been an engine of financial innovation and continue to offer cost-effective and well-tailored risk reduction products.”
The Senate has yet to take up the matter.
What do you think? We want to know!
Do you support increased regulation of the derivatives market?
Find out what Eric Dinallo, Fmr. NY State Insurance Dept. Superintendent has to say about the future of derivatives and regulation. Watch the video above.
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