congress watch

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House Agriculture hearing on credit derivatives and the U.S. economy – pt 3

December 8th, 2008 by selise

Today at 1 pm the House Agriculture committee will hold it’s third hearing in this year’s series on the role of credit derivatives in the U.S. economy.

In the November 20th House Agriculture hearing, we heard that Eric R. Dinallo (Superintendent, State of New York, Insurance Department) had backed off of his plan to regulated CDSs as insurance (audio archive). Today industry representatives will testify (managing directors of Goldman Sachs, USB and JP Morgan), as well as trade representatives (FIA and ISDA) and exchanges (CME, ICE, NYSE/Euronext and Eurex Clearing AG).

For some background on why unregulated credit derivatives may be like an IED on the road ahead – hidden and dangerous – see bernhard’s series (most recent post: The Real Danger Of A Big Three Default) and for the story on why they are not regulated see my recent diary: Which Idiot Decided Not to Regulate Credit Default Swaps?. Hearings on this topic have been held since at least 1994 when Charles A. Bowsher, who was then Comptroller General, testified before Congress at two hearings on "Financial Derivatives, Actions Needed to Protect the Financial System."

1 pmHouse Agriculture
Hearing to review the role of credit derivatives in the U.S. economy.

Panel 1:

  • Terrence A. Duffy, Executive Chairman, CME Group, Chicago, IL
  • Johnathan H. Short, Vice President and General Counsel, Intercontinental Exchange, Inc., Atlanta, GA
  • John O’Neill, Senior Analyst, Fixed Income Derivatives, LIFFE, NYSE/Euronext, London, UK
  • Thomas Book, Member of the Executive Board, Eurex Clearing AG, Frankfurt, Germany

Panel 2:

  • John Damgard, President, Futures Industry Association, Washington, D.C.
  • Robert Pickel, Chief Executive Officer, International Swaps and Derivatives Association, Washington, D.C.
  • Don Thompson, Managing Director and Associate General Counsel, J.P.Morgan on behalf of J.P.Morgan and the Securities Industry and Financial Markets Association, New York, NY
  • E. Gerald Corrigan, Managing Director, Goldman Sachs & Co., New York, NY
  • Bryan Murtagh, Managing Director, Fixed Income Transaction Risk Management, UBS Securities LLC, Stamford, CT

Live coverage at CSPAN-3 (direct realplayer link) and the committee website.

For later viewing, the hearing will be posted in the CSPAN archive.

x-posted at oxdown

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