A Conversation On Unregulated Derivatives

Ten years after the unregulated derivatives market helped trigger a global financial crisis, University of Maryland Law Professor Michael Greenberger discusses his new INET research on how American banks continue to systematically evade derivatives regulation, putting the global economy at risk.

Watch the full discussion below:


Once Upon a Time in the United States people believed that they had a society and they believed that we should construct the rules where essentially the refs don’t work for one team or the other. That ethic that sensibility certainly has come into how he’s saying come to be tested at various times in our history but probably never more fiercely and visibly as in 2007 than many people now attribute the discord that manifest as Occupy Wall Street on the left or the Tea Party on the right. It’s not just related to the financial sector but as a deterioration in the faith legitimacy and trust in American governments all together. That loss of faith if it be true puts America in a huge disadvantage in terms of its ability to evolve and transform. I think it’s interesting to be heard Scandinavia house because the last time I had breakfast here was with a group of people from Sweden who said to me the American model of fierce deregulation was always said to be the growth model but now we in Sweden don’t fear the robots anymore because we know how to make transformations where our children retain their education their healthcare. We retain our pensions maternity and paternity leave and job retraining. So we’re happy to embrace new productivity and we see America getting bogged down to despondency whether related to globalisation or related to technology. So I think before us now we have a tremendous number of challenges and we are saying burdened with the need to regenerate faith and trust in our social systems. So we go back to that what you might call that that deep wound of 2008.

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And the gentleman here with me are all how he’s saying more than experts in this realm starting down at the end. The moderator today Dennis Kelleher who work with Senator Dorgan in the leadership office during the Dodd Frank legislation and in recent years runs an extraordinary organization called Better Markets. I’d encourage you to read Stephen Brills new book because Dennis is featured as one of the good guys who’s trying to turn things around. Tom Hoenig you’ve always been trying to turn this direction with the Kansas City Fed or more recently at the FDIC and I know you’ve had some serious commentary on Michael Greenberg’s work and I would say a new glass steagall and things of the sort. Michael our speaker formerly a commissioner at the CFTC and been a good friend of mine we worked very closely through all of the Dodd Frank work. When I was at the Roosevelt Institute of Global Finance project and last and certainly not least we have Chairman Paul Volcker who I thought weighed in tremendously to the point where how would I put it. Even the industry started to attack you as I never followed George Soros says sometimes you got to be happy who your enemies are. So Chairman Volcker I’m I’m really grateful that you made to see us and continue the energy. And I know the Volcker Alliance we’ve worked with it. I know it on numerous occasions is doing excellent work and I encourage you all to stay tuned to what they have been and continue to develop not just in the financial sector but related to good governance everywhere. So with that let me turn it over to Dennis and Terry for carry it from you.