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OTC Derivatives: Their Role in the Financial Crisis, the Impact of Financial Reform and the Outlook for the Future

Author: Steven P. Goldberg.; John Cooney.

Source: Volume 24, Number 01, September/October 2010 , pp.13-26(14)

Journal of Taxation and Regulation of Financial Institutions

Abstract:

This article looks at the problems in the OTC derivatives market that, in the view of many observers, helped to trigger the financial crisis that began in 2008 and that still affects us. After discussing how we got to where we are today, the authors review the provisions of the new law that most directly affect the OTC derivatives market and its participants, and consider steps that financial institutions should consider taking now, even before implementing regulations under the Dodd-Frank Act are finalized.

Keywords: Dodd-Frank Act, Dodd-Frank Wall Street Reform and Consumer Protection Act, credit derivatives, exchange trading of derivatives, financial crisis, banking and securities regulation

Affiliations: 1: Grant Thornton LLP; 2: Grant Thornton LLP.