In the Senate: Ban Criminal Derivatives ‘Bucket Shops’Submitted by J.M. on Wed, 10/15/2008 - 06:50
Oct. 14, 2008 (LPAC)--Senate Agriculture Committee chairman Sen. Tom Harkin (D-Iowa) opened up his hearing on derivatives and the financial crisis today, with some promise of sane action, asking, "Shouldn't we just outlaw these things? The collapse owes a great deal to the traffic in credit default swaps (CDS), collateralized debt obligations (CDOs), etc. Shouldn't we just ban them?" As his hearing went on, Harkin backed off and wondered whether the U.S. Senate was allowed to outlaw financial derivatives!