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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Jess Beltz who wrote (41351)	12/29/1998 5:06:00 PM
From: Merritt	Read Replies (1) \| Respond to of 132070

JB: I'm not sure how one can remove the banks from the business. Everything's so inter-related these days in the banking business; there's no telling how much exposure to derivatives they have downstream, due to both their lending, and other holdings. Aside from that, derivatives play a very important part in currency hedging, and I doubt the industry would want that to be taken away. I don't think it should be taken away, either, as it's a form of insurance when used properly. That's how the derivative market came into being, as a form of insurance...whether it's options or commodities futures. If you raise the margin requirement, then the derivative becomes more like the commodity, and less like an insurance premium. It ain't the tools, but them that're using 'em.