The Unregulated Multi-Trillion Dollar Derivatives Market Exceeds Global GDP and Poses a Clear Danger to the Global Economy (VIDEO)

Chris Whalen & Barry Ritholtz: The Unregulated Multi-Trillion Dollar Derivatives Market Timebomb

(Bloomberg Law) — The unregulated multi-trillion dollar derivatives market exceeds global GDP and poses a clear danger to the global economy, Chris Whalen, Senior Managing Director at Tangent Capital Partners, and Barry Ritholtz, CEO at Fusion IQ, tell Bloomberg Law’s Lee Pacchia. “The fix is very simple,” says Ritholtz, “repeal the Commodities Futures Modernization Act and suddenly this becomes like every other financial instrument.” Whalen notes that the financial industry is reluctant to change the way derivatives are managed because they generate large returns at a time when banks are less profitable than before. “The super normal returns that they earn from derivatives subsidize the rest of the business,” he says. One way or the other, Ritholtz and Whalen believe the financial industry needs to get used to the idea of making less money.

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2 Responses to “The Unregulated Multi-Trillion Dollar Derivatives Market Exceeds Global GDP and Poses a Clear Danger to the Global Economy (VIDEO)”
  1. stripes says:

    I read at dailyfinance.com it is a total of around a Quadrillion dollars in derivatives fraud created by Wall Street. In the CNBC documentary HOUSE OF CARDS….an Ex stockbroker said they were selling investments in anything with a revenue flow and even things without a revenue flow. Where were the banking regulators & others in charge of this titanic of fraud known as Wall Street Investment Banks….? What the hell was up with AIG who owed $600 trillion in credit default swap insurance at the time of the TBTF bailouts….All that “insurance” backed by zero….? All those involved, from the top down should have had their assets seized and should be behind bars. No audits of the U.S. TREASURY or any of these institutions is criminal…The name TBTF is a con…and a ruse….it is the name of the cover up for the biggest robbery of our wealth and property in U.S. history.

  2. lies is all they tell says:

    this is a horror. this the free money the banks are trying get from people defaulting. unregulated by congress, because they all own stock . so we have over 550 people in congress wanting to rick on our backs. now we know why nothing has happened. NO foreclosure mortitorium. why the president calls us “deadbeats” which is the opposite of responsible homeowners. although most of us are responsible. responsible to provide over our families head and for buying a home. where are we non responsible. ok people please go on face book all the foreclosure group. we need to plan a trip to washington next summer. we need to make a meeting with the comittiees this needs to stop. conflict of intrest. they will never have a derivitive reform and lose money. this is horrible,et people who are current
    2009!!! now we know what the hamp loan was for. “how can we get people who are current to default so we can collect derivitives/CDS? offer a modification and never actually approve them but push to foreclsoure during applications. and or make modifications that they still can not afford to pay.” all this has happened to many of us these are high crimes people. please wake up we need to get mad here

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