The profiteers from Credit Default Swaps never wanted them regulated. In particular, they did not want the issuance of CDS's to be regulated like Insurance was regulated. Even when the CDS's were the moral equivalent of Insurance and cried out for Regulation. "The most critical role for regulation is to make sure that the sellers of risk have the capital to support thier bets." Michael Lewis and David Einhorn, "The End of the Financial World As We Know It" p. 9, col. 1 (Sunday New York Times, "Week in Review" Section, January 4, 2009).
The results are clear. The profiteers from Credit Default Swaps did not have the capital, the Reserves, to support their bets.
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