U.S. regulators propose regulating OTC derivatives
The Obama administration on Wednesday sketched out a framework for regulating financial derivatives in the United States, which have been blamed for worsening the financial crisis.
The recommendations included subjecting all over-the-counter derivatives dealers to a robust regime of prudential supervision and regulation, including conservative capital, reporting and margin requirements.
In a letter to Senate Majority Leader Harry Reid, Treasury Secretary Timothy Geithner said the reforms were aimed at preventing derivatives from posing a risk to the financial system, improving transparency, and preventing market manipulation.
(Reporting by Emily Kaiser; Editing by Neil Stempleman)
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