Senator Dodds financial bill does not propose the
treatment of credit default swaps (CDS) as insurance, so New
York State is taking the law into its own hands.
Last week, the Insurance Committee of the New York State
Assembly released a draft bill that proposes
the licensing of credit protection sellers as credit default
insurance corporations (CDICs). It also plans to ban naked CDS
If sellers have to be licensed, then there will be
more capital requirements and more regulation,...