Americas staff writer
Over the past year, US politicians have requested a way to
regulate credit default swaps and last month President Barack
The 115-page Obama proposal uses the Commodities Futures
Trading Commission (CFTC) and Securities and Exchange
Commission (SEC) to regulate the derivatives market, including
credit default swaps. Obama wants the two regulators to
cooperate, but their capacity to work together is strained
after years of fighting over credit default swaps.
The CFTC and SEC first appeared before Congress and
requested jurisdiction over credit default swaps in 2000. The
debate remained unsettled until 2008. After Lehman Brothers'
failure was linked to credit default swaps, SEC Chairman
Christopher Cox pushed Congress to give the SEC jurisdiction.
The CFTC followed with a request of its own, backed by the
Senate Agriculture Committee. "There has been...