News Summary: Non-US derivatives oversight delayedJuly 12, 2013 @ 3:42 pm
(AP) - DELAYED POLICY: A policy allowing a U.S. agency to regulate derivatives trading overseas to help reduce risks to the global financial system will be delayed under a vote Friday.
MIDDLE GROUND: The Commodity Futures Trading Commission voted 3-1 to stagger the effective dates for the policy. The delay marks a middle ground between Chairman Gary Gensler, who wanted to extend the CFTC's regulation to overseas markets now, and Wall Street banks, which opposed extending its reach.
BAD BETS, BIG RISK: A derivative is an investment that's based on the value of an underlying asset, such as oil or corn or dollars. Bad bets on risky derivatives, and lax regulation of them, were a leading cause of the 2008 financial crisis.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
What We Learned
Despite beating the 49ers, Danny O'Neil says there are still three questions
Find Christmas trees, Santa photos, and lights on the MyNorthwest Holiday Map
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.