Congress missed opportunity to regulate Credit Default Swaps in 2000
Congress passed a law in December 2000 confirming that Credit Default Swaps, and other swaps like them, would not be regulated. A bi-partisan decision passed 95-0, after very little substantive debate.
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The Global Financial Crisis »The Global Financial Crisis
Long-term causes of the financial crisis? »Long-term causes of the financial crisis?
Unintended consequences of earlier public policy choices »Unintended consequences of earlier public policy choices
Investment banks incentivised to move into riskier activities »Investment banks incentivised to move into riskier activities
Originating and distributing complex derivative securities »Originating and distributing complex derivative securities
Congress missed opportunity to regulate Credit Default Swaps in 2000
CDS felt to be a sophisticated market, best left alone »CDS felt to be a sophisticated market, best left alone
CDS market complex, unregulated and secretive »CDS market complex, unregulated and secretive
Complex financial instruments that few understood »Complex financial instruments that few understood
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