Tagged: Crash of 2008

The future of derivatives trading

July 12th, 2010 in Economics 0 comments

penny with stock tradingAs the Senate is poised this week to vote on the House-passed compromise bill reforming the financial regulatory system, Law Professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture at a Crossroad,” speculates about the future of derivatives trading once the reform act is enacted.  More important than regulating the trading of derivatives, the instruments that helped bring down the financial system in 2008, Frankel feels that citizens should turn away from the “medicine men” (and women) who created the risky bets.

“Unless the geniuses who created the enormously risky ‘risk reducers’ and those who sold them take part of what they sell, and never again bet against what they have created and sold, we will continue to have the enlightened age of a sophisticated financial system —  unemployment, enormous national debt, and the death of the middle class that used to be America’s backbone.”

Contact Tamar Frankely, 617-353-3773, tfrankel@bu.edu

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Financial regulatory bill agreed on

June 25th, 2010 in Law 0 comments

buy & sell keysHouse and Senate conferees finally worked out a compromise bill aimed at reshaping financial regulations to avoid another Crash of ’08, with a final vote set for next week and President Obama expected to sign it by July 4th.  As expected: many winners and losers.  One controversial provision gives the SEC authority to require stockbrokers to protect their clients’ interest when recommending investments, potentially subjecting brokers to the same fiduciary duty as financial advisers.  Law Professor Tamar Frankel, author of “Trust and Honesty: America’s Business Culture at a Crossroad” and authority on securities law, says it’s about time.

“It offers a chance and a challenge for the SEC to become the leader that it used to be from the 1940s until about 1980.  It is a chance to bring about a far more reliable financial system and to refocus on productivity rather than betting.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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