Despite unregulated derivatives contributing significantly to the recent financial crisis, it seems no one in Congress or Washington wants to do anything about regulating them:
Marketwatch: [Regarding regulation] Wall Street leaders, including Laurence Fink, the chairman and chief executive of BlackRock Inc. are on board as are a majority of congressional leaders.
But more than 18 months after the crisis began in earnest, Washington still doesn’t seem to be able to pass even the weakest bill bringing order to this dangerous marketplace. Banks, which have spent $334 million in lobbying efforts this year, are complaining that new regulations are too onerous. Investor advocates complain there are too many loopholes.
Even with support from Timothy Geithner and other big industry names, derivatives regulation is not looking likely anytime soon. And who would regulate all of this? Certainly not the SEC, as it’s having enough trouble as is. For now, derivatives shall remain an OTC affair.
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