This time it comes from current chair (and former Asst. Treasury Sect. under Robert Rubin) Gary Gensler. He is warning congress about exempting hedge funds from the current proposal on derivatives. As amended the current proposals have been weakened already but here is his warning:
Hedge funds and financial firms shouldn’t be allowed to sidestep potential new laws governing the $592 trillion over-the-counter derivatives market, Gary Gensler, chairman of the Commodity Futures Trading Commission said today in Chicago.
Any exemptions for so-called end-users should be “very narrowly defined” to include only non-financial institutions, Gensler said. End-users such as utilities, energy producers and agricultural companies have pushed for an exemption to new laws that would require standardized over-the-counter trades to go through exchanges or clearing houses.
Remember, Long Term Capital Management (LTCM) - what short-term memories we have.