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)