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To: Broken_Clock who wrote (166177)	11/21/2008 4:31:41 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 306849

AFA as Geithner "warning about derivatives", was he not in a position to do more than just warn? Why didn't he? What does he propose to do about it (regulation-wise) now that he didn't do then? What would he have done differently after LTCM? These are all pretty important questions he needs to answer at the confirmation hearing. I hope Clowngress doesn't give him a free ride because he's "nice"

To: Broken_Clock who wrote (166177)	11/21/2008 4:31:44 PM
From: Les H	Read Replies (1) \| Respond to of 306849

I don't think he really warned about them. He encouraged the growth of the non-bank financial system and the contribution of credit derivatives to their rapid growth. "Let me conclude by reiterating the fundamental view that the wave of innovation underway in credit derivatives offers substantial benefits to both the efficiency and stability of our financial system. The extent of these benefits will depend, in part, on the degree to which market participants can keep up with the pace of change in the market through continued investment in both risk management and in the processing infrastructure. We have been through a period of relatively favorable financial conditions, and the prospect for future stability will depend in part on the degree of care and conservatism market participants bring today to judgments about opportunity and risk management." ny.frb.org

To: Broken_Clock who wrote (166177)	11/21/2008 6:22:19 PM
From: energyplay	Read Replies (1) \| Respond to of 306849

T. G. was in the New York Fed, the leverage limts decision was made by the SEC. Exemption of credit default swaps from commodity, banking, insurance, and gambling laws was done by Congress. When much of the sub prime problem was building ,Fannie and Freddie were regulated by the office of thrift supervision, then OFEO, which was under the department of Housing and Urban Development. So if you wanted ot play fast and loose, you could find a regulator to accomodate your wish. I'm sure we will see a complete review of everyhting he did.