Why Treasury's Geithner Calls Derivative Rules Outcry 'Wildly Overexaggerated' at Golden Networking's Derivatives Conference
Derivatives Leaders Forum 2010, "Strategies for Increasing Profits under an Evolving Regulatory Framework" (http://www.DerivativesLeadersForum.com), July 22nd, New York City.
New York, NY, July 12, 2010 --(PR.com)-- U.S. Treasury Secretary Timothy Geithner on Friday said businesses have "wildly overexaggerated" their concerns about the potential impact of new rules on over-the-counter derivatives. A panel of experts will discussion Mr. Geithner's assertion at Golden Networking's Derivatives Leaders Forum 2010, "Strategies for Increasing Profits under an Evolving Regulatory Framework" (http://www.DerivativesLeadersForum.com), July 22nd, 2010, New York City, sponsored by UltraHighFrequencyTrading.com.
As reported by The Wall Street Journal, companies that "need these products, who participate in these markets, who have a good economic interest in needing to buy some protection against a potential risk in the future, they're going to be able to do that in a way that leaves the system more stable, less vulnerable to these kinds of crises," Geithner said in an interview with National Public Radio's Morning Edition. Nonfinancial companies that use derivatives in their regular business, such as airlines that hedge against the future price of jet fuel, say the language, contained in federal financial overhaul legislation, might now require the companies to set aside additional cash, or margin, when they enter into certain type of derivatives contracts.
The International Swaps and Derivatives Association, an industry group that raised concerns about the provision, has said it could cost the U.S. companies, or end users, that use derivatives up to $1 trillion. Top firms on Wall Street also complained the measure, while possibly increasing the cost of hedging their risks, could make it more difficult to find counterparties. Other companies have said they'd rather use the funds for the increased cost of hedging to hire workers. Geithner defended the proposed policy, saying it would prevent firms from entering into derivative contracts without having the financial resources to back them up.
Derivatives Leaders Forum 2010 is produced by GoldenNetworking.net (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs, investors and diplomats, founded by former McKinsey consultant and Columbia Business School MBA Edgar Perez.
Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net. Golden Networking has been frequently featured in the press, including recent articles in The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections" (http://www.nytimes.com/2009/11/07/nyregion/07network.html), Los Angeles Times, "Speed-addicted traders dominate today's stock market" (http://articles.latimes.com/2010/may/16/business/la-fi-new-exchanges-20100516), Reuters, "Revamp looms as trading experts huddle at SEC" (http://www.reuters.com/article/idUSTRE6504U820100601) and Columbia Business School's Hermes Alumni Magazine, "10 Under 10" (http://www7.gsb.columbia.edu/alumni/news/ten-under-ten).
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As reported by The Wall Street Journal, companies that "need these products, who participate in these markets, who have a good economic interest in needing to buy some protection against a potential risk in the future, they're going to be able to do that in a way that leaves the system more stable, less vulnerable to these kinds of crises," Geithner said in an interview with National Public Radio's Morning Edition. Nonfinancial companies that use derivatives in their regular business, such as airlines that hedge against the future price of jet fuel, say the language, contained in federal financial overhaul legislation, might now require the companies to set aside additional cash, or margin, when they enter into certain type of derivatives contracts.
The International Swaps and Derivatives Association, an industry group that raised concerns about the provision, has said it could cost the U.S. companies, or end users, that use derivatives up to $1 trillion. Top firms on Wall Street also complained the measure, while possibly increasing the cost of hedging their risks, could make it more difficult to find counterparties. Other companies have said they'd rather use the funds for the increased cost of hedging to hire workers. Geithner defended the proposed policy, saying it would prevent firms from entering into derivative contracts without having the financial resources to back them up.
Derivatives Leaders Forum 2010 is produced by GoldenNetworking.net (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs, investors and diplomats, founded by former McKinsey consultant and Columbia Business School MBA Edgar Perez.
Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net. Golden Networking has been frequently featured in the press, including recent articles in The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections" (http://www.nytimes.com/2009/11/07/nyregion/07network.html), Los Angeles Times, "Speed-addicted traders dominate today's stock market" (http://articles.latimes.com/2010/may/16/business/la-fi-new-exchanges-20100516), Reuters, "Revamp looms as trading experts huddle at SEC" (http://www.reuters.com/article/idUSTRE6504U820100601) and Columbia Business School's Hermes Alumni Magazine, "10 Under 10" (http://www7.gsb.columbia.edu/alumni/news/ten-under-ten).
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