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To: Gemlaoshi who wrote (13656)	1/18/2002 4:10:02 PM
From: Ilaine	Respond to of 74559

With respect to derivatives, my understanding of what the Fed and the BIS have been working on since 1998 is having financial institutions agree to minimize risk, increase accountability and provide transparency through mutual agreements. I don't doubt that the concept of Congress regulating the derivatives market is something the Fed sees as unworkable. I couldn't begin to tell you how much of the derivatives market involves offshore transactions but we know that most of Enron's derivatives transactions involved offshore entities. Congress doesn't have a clue about this - the members of Congress will vote according to who contributed the most to their campaigns. After years and years of dealing with Congress, Greenspan is well aware that Congress doesn't have a clue. So the concepts are not mutually exclusive - the Fed and the BIS are trying to solve the problem themselves, rather than letting Congress screw it up.