Commodity options and futures trading act of 2000 sponsors


And that was influential in helping to pass the Commodity Futures Modernization Act a little over a year later, in late We've been talking with Michael Hirsch, senior editor of Newsweek. I mean, it was very interesting.

Summers, who had replaced Rubin, did give testimony in which he said very plainly that he thought swaps should be largely unregulated as derivatives. Thanks for coming in. How big was it?

What happened with the market? Well, let's talk about that, that law. The point is that no one had any sense of systemic risk, which we've now learned, you know, is really the culprit - that the whole market could simply collapse all at once, and that's precisely what happened.

And they quashed it, in effect. Well, let's talk about that, that law. This was what, you know, what Wall Street wanted. This week, a guest on the program, lawyer John Martini, said the party ultimately responsible for this financial mess is Congress.

Was anybody paying attention? Michael, thanks for coming in. The point is that no one had any sense of systemic risk, which we've now learned, you know, is really the culprit - that the whole market could simply collapse all at once, and that's precisely what happened. But essentially, what happened is inin the spring of that year, Brooksley Born, who was then the chairwoman of the Commodity Futures Trading Commission, began to get increasingly worried about this market that commodity options and futures trading act of 2000 sponsors increasing in size and that was utterly unregulated by any government - derivatives, basically.

Thanks for having me. He was referring to a law Congress passed in December that prevented commodity options and futures trading act of 2000 sponsors of the market for derivatives, including credit default swaps. And then in the subsequent months, what happened was the President's Working Group met again in November '99 and agreed that credit default swaps should go largely unregulated. But essentially, what happened is inin the spring of that year, Brooksley Born, who was then the chairwoman of the Commodity Futures Trading Commission, began to get increasingly worried about this market that was increasing in size and that was utterly unregulated by any government - derivatives, basically. We've been talking with Michael Hirsch, senior editor of Newsweek.

Little pieces of risk were being sliced up in derivative form and being sold around the world in the case of credit default swaps, like the ones sold by AIG. How big was it? But it did have his imprimatur and the letter from the Treasury Department supporting, for the most part, the Commodity Futures Modernization Act, as it was drafted, was used by Phil Gramm at the time as part of his campaign to help sell it. Heard on All Things Considered.

And then in the subsequent months, what happened was the President's Working Group met again in November '99 and agreed that credit default swaps should go largely unregulated. We're going to hear more now about the effects of that law, the Commodity Futures Modernization Act, and the players behind it. But it had the support of the Clinton administration, key players in the Clinton administration, and Democratic senators.