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To: neolib who wrote (189386)	3/8/2009 4:32:29 PM
From: James Hutton	Respond to of 306849

On some derivatives, the parties or counterparties may have an underlying position. Part of future regulation may be to make that mandatory. In fact, I think some legislation may have already been proposed to that effect.

To: neolib who wrote (189386)	3/8/2009 9:42:57 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

>> it is illegal to take out life insurance on another person.<< What he meant is by 'regulate' is they would not be allowed to do this at all.....which I agree with.

To: neolib who wrote (189386)	3/9/2009 1:03:46 AM
From: Sr K	Read Replies (1) \| Respond to of 306849

Businesses, including Walmart, have owned policies on their employees for years. It's also standard procedure for some Buy-Sell agreements.

To: neolib who wrote (189386)	3/9/2009 5:47:28 AM
From: saveslivesbyday	Respond to of 306849

'best I think we can do is regulate them like any other "security" or "insurance policy."' It's not illegal to sell uncovered calls on an equity. However, the risk of "default" is well-known, which is why our friendly brokerages require a considerable amount of collateral (margin buying power) for us to do so. ... as well as level 4 options approval, which in itself is regulated by the SEC. But as far as I'm concerned, it's just another example of WS's ability to manipulate the rules for their own benefit - and fuel a global economic bubble and subsequent collapse in the process.