 Quote:
Originally Posted by clifp
The 60 Minutes piece made a big deal how the 2000 legislation prohibited states from regulating CDS.
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CDS isn't really insurance any more than a put or a call is. We shouldn't have it regulated by the insurance commission and we really, really, really, shouldn't have it regulated at the state level. Moving CDS trading from the over-the-counter market to an exchange (something broker dealers have vigorously opposed, until now) is sufficient to fix the problem with CDS. Rest assured that this will happen. And when it does, CDS will become as vanilla as any other exchange traded security.
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