The SEC's New Enforcer

henry hu sec

Look out derivative and credit default swap traders — Dr. Henry Hu is coming to town.

The University of Texas law school professor is reportedly Mary Schapiro’s pick to head the SEC’s Office of Risk Assesment which will regulate the complex financial products blamed for creating a crisis.

Hu has been critical of the systemic risk posed by sophicticated securities and credit derivatives. And, as the New York Post notes, Hu is also known for “slamming hedge funds that take out hidden financial positions in companies they exercise voting power over, as well as criticising bondholders that make bets that their companies will fail.”

According to his UT bio, Hu written on “asset allocation, the regulation of banks, derivatives, hedge funds, and mutual funds, corporate governance, the “decoupling” of debt and equity rights from economic interests, financial rationality and sophistication, the global “competitiveness” of U.S. derivatives markets, model risk, risk management, swaps and other financial innovations, time diversification, and Warren Buffett.”

Basically, the guy knows his stuff.

Photo: University of Texas

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