Regulators Seek Trace-like Reporting for Derivatives



‘Significant Gaps’

“Significant gaps in the basic framework of oversight over critical institutions” helped cause the financial crisis, Geithner told reporters. “A series of comprehensive reforms to create a stronger system, less vulnerable to crisis, with stronger protections for consumers and investors” will be hashed out with Congress, he said.

Part of his plan is to push banks to increase price transparency by adopting electronic trading systems for over- the-counter derivatives. Over-the-counter derivatives transactions are now typically conducted over the phone between banks and customers.

Geithner sent a proposal to Congressional leaders listing four main objectives: to protect against systemic risk by creating a more resilient market, improve efficiency and transparency, prevent manipulation and fraud and reduce risks to less-sophisticated investors, Geithner said.

“Some of the U.S. authorities have said we were pretty close to a meltdown and I actually think listed marketplaces with multilateral clearing are part of the answer to that question,” said Thomas Kloet, chief executive officer of TMX Group Inc., owner of Canada’s main equities and derivatives market. “I hope authorities don’t let go of that. I think they have to address that.”

See also:

Can A Free Marketeer Defend Regulating Derivatives?

(“You bet your bippy!”)

Well, Hernando de Soto does. The great Peruvian expert on building markets in underdeveloped countries points to the irony that our ultra-sophisticated Western market system has replicated everything that is wrong with a Third World informal economy: uncertainty about who owns what, uncertainty about who owes what, and uncertainty about who will or can enforce these ownings and owings.

Meanwhile, over at the Peterson Center, Adam Posen and Marc Hinterschweiger question whether the derivative explosion ever really helped the economy that much.


Clearly, growth in new financial products has outpaced fixed capital formation both globally and in the United States by a large margin. This has been especially true since 2006, when investment stagnated, but derivatives continued to grow at a rapid rate. There only seems to be a weak link, if any, between the growth of the newest complex—and now proven dangerous if not toxic—financial products and real corporate investment.

See also:

From Bloomberg

May 11, 2009

The net effect of derivatives on the system is probably not beneficial, Warren Buffett says.

49 Responses to “Regulators Seek Trace-like Reporting for Derivatives”

  1. rosettasister Says:

    I’ll be listening to Tenacity this evening.

    Date / Time: 5/14/2009 6:00 PM Pacific

    Category: Politics

    Call-in Number: (347) 215-6929

    I believe this is the link:

  2. rosettasister Says:

    Godspeed, Tenacity!

  3. rosettasister Says:

    This is the article mentioned in video above:

    How We Can Restore Confidence

    By Charles T. Munger
    Wednesday, February 11, 2009; A19

    There was also great excess in highly leveraged speculation of all kinds. Perhaps real estate speculation did the most damage.

    But the new trading in derivative contracts involving corporate bonds took the prize.

    This system, in which completely unrelated entities bet trillions with virtually no regulation, created two things:

    a gambling facility that mimicked the 1920s “bucket shops” wherein bookie-customer types could bet on security prices, instead of horse races, with almost no one owning any securities, and,

    second, a large group of entities that had an intense desire that certain companies should fail.

    Croupier types pushed this system, assisted by academics who should have known better.

    Unfortunately, they convinced regulators that denizens of our financial system would use the new speculative opportunities without causing more harm than benefit.

  4. rosettasister Says:

    I was eleven or twelve years old (1969) when this album came out.

    But I am still profoundly influenced by it.

  5. rosettasister Says:

    Listening to Tenacity now.

  6. jrinNC Says:

    I got to say Ten is very gifted.

  7. rosettasister Says:

    Hey, jr!

  8. rosettasister Says:

    I’m pretty sure this is the guy who had Secret Service show up at his house:

  9. rosettasister Says:

    This has to do with video above:

    From: Walter Francis Fitzpatrick, III, United States Navy Retired



    Carl Swensson

  10. rosettasister Says:

    Well, I feel pretty dumb after listening to Tenacity tonight.

    I find I really don’t know a thing about grand juries.

    Bravo, sir!

    Now I’m on a mission to find out more.

    I know that some are trying to go this route on the eligibility issue.

    I wonder if anything can be done on the limited government front.

    I know that was our Founders’ intention.

    And we’re so far removed from their intent.

    I know we can’t go back in time (not yet anyway).

    But there must be a way to limit the severity of the damage.

    Let’s not go so far that there’s no turning back.

    Good night, good people.

  11. rosettasister Says:

    Oh, geez!

    I totally forgot to feed my dog!

    No wonder she’s got a strange look on her face.

  12. Tenacity Says:

    Rose and the Gang,
    I am humbled and very appreciative of your support and kuddos. Thanks for listening and posting the link. Having Red Beckman and David Justice as guests made my job very easy. I must admit, it was a hoot!

    Here is the link to Red Beckman’s seminar “L. A. Lawman” It is well worth watching.***

  13. Tenacity Says:

    I am afraid that I have some sad news. I know that you are a caring bunch and would want to know so here goes. We have lost our sister JAC. Her name was Cindy as many of you know. She learned some devastating things about her fiance’ and was experiencing tremendous financial stress on top of losing the relationship. I will not gossip and suffice it to say that life became more than she could handle. I reached out to her and asked her to call me or someone that she trusted if she became too depressed to cope. Others here did the same. As others here are aware, this was not her first attempt. After several days of not being able to get an answer on her phone, I heard from a mutual contact in Indiana, that Cindy ended her life nearly a week ago. Not having internet service for the last couple weeks prevented her from communicating with those that seemed to be her closest friends…Rose’s Gang. All of you were very important to her. She was almost completely isolated. She was just starting to make some friends in the local freedom movement. It was one of them that got to our mutual contact who called me to let me know. I am very sorry to bring this to you this way. She was a talented lady that really did not know her own worth. I know I will miss her presence here.

    If you wish to contact me directly, just let Rose know and she will get your information to me. May God Bless Cindy’s soul and may God bless you all.

  14. Troy Says:

    I appreciate you passing on the news about Cindy….While I am sad, I am also angry…..When I talked to her on the phone, for almost two hours, she promised me that she would never attempt suicide again….We talked about the subject at length for quite a while and she also said that she would call or email me if she started to feel overwhelmed with depression or grief…..I don’t pretend to know what the rules are, but I sure hope that she is allowed to exist along side her past loved ones….What she did is so wrong….May God have mercy on her soul.

    Cindy, you will always be loved and missed at Rose’s Place….R.I.P.

  15. KoolAid_Free_Lexi Says:

    Ooh this is awful.

  16. jrinNC Says:

    I am in total shock. I have been missing her anyway, but figured she was so busy in her new job and getting ready for her wedding. I am like Troy, while I feel that it was wrong to take her life, I pray that God will take into consideration why it became necessary for her to to do so. I am so afraid that we will be seeing so much more of this type of thing as time progresses. The pressures will start to be so overwhelming for some. Folks, remember GOD IS IN CONTROL. If you have faith in Him, he will not forsake you no matter what is happening in this world. All we can do is pray and look to the heavens. I find myself doing that so much more than I ever did before. May God Bless Each of You and wrap his Angel’s Wings around you as we go thru the days of “Tribulation.”

  17. jrinNC Says:

    Ten – just to let you know I listened to your show. You did a fantastic job. You sound just as I imagined from your photograph in your quartet group. Sooner or later people WILL wake up. When that time comes there will be such chaos. I am afraid that time is not far off. But I want to personally thank you for your involvement and all that you are doing to forward this movement. I envy your fearlessness. While I am outspoken on issues that I truly believe in, I still experience moments of fear that prevent me from going too far. But I have to say, I will not give up. They will take me away kicking and screaming. I just wish this movement was more active in my area so that I could get involved. I live in the coastal areas of NC where the folks are farmers and fishermen and are so laid back (in other words – high tiders).

    But again, Thank You, Ten for all you are doing.

  18. amy1 Says:

    I am so sorry to hear about Cindy. As a nurse, I understand how depression can take complete control of ones life when they are unable to see beyond the present..I feel so sad for her to have experienced her last hours in such a way… Sometimes, the depth of the depression can prevent one from reaching out to those who have offered their help. God bless those of you who have offered. God bless Cindy. May she rest in peace.

  19. jrh Says:

    I too am saddened by the news of Cindy. I have read so many of her posts over the last 6 months and never imagined that she would experience this sad end. It’s always a difficult period for all to wonder what could have been done to save her from this.

    May she now rest peacefully, free from the torments that caused her to leave this life. So rest forever in peace justanamericancindy.

  20. Troy Says:

    I know that some people here are going to be curious about Cindy and the how and why.

    Here is the reason that I’m so upset about about the loss and also upset at her.

    About two weeks ago I got an email from JAC entitled, “Troy, help!!!”
    She wrote that she needed a friend to talk to and she furnished her phone number to me….I immediately called her and we spoke for a couple of hours…. After some probing questions by me, she had informed me that she had been out of the hospital for a few days after swallowing MANY pills…She overdosed.

    We talked about it for a long time and she promised me she wouldn’t do it again….After I got off the phone with her my gut feeling was that I didn’t do or say enough, so I forwarded the email that she had sent me to Tenacity, because I was pretty sure that he and her had spoken before and that she would listen to him…..Tenacity also became involved in reaching out to Cindy….Unfortunately she learned of some devastating news regarding her fiance’ (the relationship was over) and coupled with financial distress, as well as the fact that most people that were near and dear to her had already passed, she obviously could not bear any more pain/grief.

    So you see, she asked for my help and got me involved, but in the long run disregarded my offerings and took the ultimate step….Now I feel like I failed her….That is one of the reasons that I’m so upset about this whole thing….Of course the other reason is because we all lost our JustAmericanCindy.

    Now it should be clear why I earlier posted that I was sad and angry.

    I will not speak of this again

    May God bless you Cindy.

  21. jrinNC Says:

    Troy, you did not fail Cindy. The fact you reached out says a lot as I am sure Ten did too. So please do not feel like you failed. God’s plan was fulfilled. All we can do his beseech him to forgive her. God Bless you Troy.

  22. Troy Says:

    Thanks Jr

  23. patriotamy Says:

    I am shocked and saddened by the news about Cindy. She was an awesome person. Tender and sweet. We will all miss her.

  24. Tenacity Says:

    jrinNC, Rose and the Gang,

    Take note of jrinNC’s post above. Although this is a great music and informational venue, it is also a ministry. Whether we want it to be or not, this is a community. I appreciate the loyalty, intelligence and spirit of so many of you. If Troy had not reached out to JAC and pulled me in as well, she would not have had anyone to share her grief and story with. I encouraged her to reach out to one of the ladies in Indiana because she literally had no one…no family, no counselor, no friend to prop her up and the person she had invested the last 3 years in betrayed her and deceived her. This appeared to be a pattern in her life.

    I want to share the four BIGGEST LIES we ALL experience in our lives:
    1. We must meet certain standards to feel good about ourselves.
    2. We must have the acceptance of certain people to feel good about ourselves.
    3. We are bad and deserve punishment.
    4. We are hopeless and cannot change.

    These lies are not of God. Satan does not want us to forgive ourselves or others. When we beat ourselves up and look to all the wrong places to fill our love tanks, we simply empty our love tanks and those tanks around us. If your tank is low or empty, no human being can fill it. We have a God shaped vacuum in us and only God can fill that vacuum. I asked Cindy about her relationship with Him. She had been turned off by organized religion. She believed, but couldn’t get past the four BIGGEST LIES.

  25. hockeyfan530 Says:

    i too am sorry to hear about JAC. I always enjoyed her posts. Kind of puts everything in perspective. However, the living have to continue living and continue the fight for those that have gone before us. I know i have changed since this debacle occurred with barry. I see many people as much more naive, stupid or whatever word you want to use. I am much more cynical and frustrated with stupidity these days. Before i could laugh at the stupidity now i just get frustrated at their stupidity because now their ignorance effects EVERYONE.

    God bless you JAC

  26. patriotamy Says:

    Ten- You are so right about the biggest lies you mention.

    Also, you are completely accurate about them not being of God. He is the God of love, the God of peace, the God of forgiveness.

  27. rosettasister Says:

    Tenacity Says:
    May 15, 2009 at 5:58 am

    I am afraid that I have some sad news. I know that you are a caring bunch and would want to know so here goes. We have lost our sister JAC.


    It’s just after 9 AM Pacific and I am reading this for the first time.

    I am deeply saddened by this news.

    Words fail.

    Tenacity, thanks so much for being our contact person.

    I just want to read what others have written right now.

    There was one comment in moderation from

    amy1 Says:
    May 15, 2009 at 11:32 am

    Actually reading amy’s comment was how I found out.

    Thanks, amy.

    A while back, Cindy posted a link to a picture of herself.

    Does anyone still have that link or remember approx. when that might have been?

    I am so sad, so sad.

    I refuse to speak of Cindy in the past tense.

    I know she’s still around.

    I have been dreaming of this beautiful blonde with blue eye shadow and wondering who she might be.

    Could it be Cindy?

    I would like to know, if possible, when Cindy passed over.

    Ten, you’re right, I feel like I lost my sister.

    But she is not lost and I will keep her close to my heart.

    And I will light a candle for her and pray for her.

    I do believe that Cindy would want us to carry on.

    Blessed are they that mourn, for they shall be comforted.

    I wonder if Cindy has a care in the world where she is right now.

    Ponder nothing earthly minded

    The lyrics are here:

  28. Walter Francis Fitzpatrick, III Says:

    The YouTube posting regarding the “FITZPATRICK CRIMINAL COMPLAINT” is narrated by Mr. Carl Swensson of Rise Up For America.

    U.S. Secret Service Spacial Agents Roland McAmis (Resident Agent in Charge) and Leslie L. Cochran, escorted by local police officers Scruggs and Wilkins, approached me, not Carl.

    I’m appreciative and grateful of your notice.

    Fair winds, following seas,
    Walter Francis Fitzpatrick, III
    United States Navy Retired – Surface warfare
    The JAG HUNTER (

  29. cynkading Says:

    I know that I don’t post much but I read daily here. I have also had conversations with Cindy. I even joined her website awhile back. I am just stunned. I always enjoyed her postings, her wit and her loyalty to others on here. She was a definite bright spot in my day. The ones who have been here from the beginning recall her stories about the birth of her dog’s puppies. The pictures of them on photobucket were just great. I am deeply saddened.

  30. rosettasister Says:

    It occurred to me it might be a good idea to put up a separate post for Cindy where we can share our thoughts, our memories, our prayers, our concerns.

    I will do that momentarily.


  31. rosettasister Says:

    cynkading Says:
    May 15, 2009 at 4:49 pm

    Hi cynkading.

    I, too, am deeply saddened.

    But I find myself conversing with Cindy and chuckling about some of her shenanigans!

    Could you possibly provide the link to Cindy’s website and also the link to the images you mentioned?



  32. rosettasister Says:

    Walter Francis Fitzpatrick, III Says:
    May 15, 2009 at 4:45 pm


    Thank you, sir, for paying us a visit.

  33. cynkading Says:


    Cindy’s website that she created was the and I am going back to some of your older threads where you could click on her username and it would pop up pics of her dogs. Will let you know when I find it.

  34. cynkading Says:

    btw, if anyone wants to help locate the posts where she putup with pics of her and her dogs it seems to be around Nov or Dec.

  35. rosettasister Says:

    Thanks so much, cynkading!

  36. rosettasister Says:

    I just thought of something!

    I did tell Cindy I wanted to be married to her in my next lifetime!


    Laughter is the best medicine!

  37. jrinNC Says:

    Rose here is Cindy’s Album

  38. patriotamy Says:

    Rose, you said,”I have been dreaming of this beautiful blonde with blue eye shadow and wondering who she might be.”

    I was also looking for the post where she had put her personal picture link. If I remember correctly, she was a blonde with blue eyes..

  39. rosettasister Says:

    Thank you both, jrinNC and patriotamy!

  40. hockeyfan530 Says:

    what a shock!

    Barry is such a sorry ass piece of crap! He wants these photos leaked. But, in typical barry fashion he wanted to cover his ass. He said he would appeal the 2nd circuit court’s decision to show the pics. He only said this so that it would appear he didn’t want them released. HOWEVER, if he truly DID NOT want the released all he had to do was give an executive order! PERIOD. Then they wouldn’t have been released…end of story…no appeals, case closed. I really hate this man.

  41. Troy Says:

    Rose, if I’m not mistaken, I too believe that Cindy was blonde / blue eyed….In fact, I’m almost certain of it.

  42. Troy Says:

    The first love of my life was also named Cindy and I lost her to a car accident in 1979, a year after we graduated high school….I still think of her often.

    JAC / Cindy is now what what I believe to be, and call, a “pure light being” (pure energy)….Others call them angels.

    This song is dedicated to Cindy and Cindy, for they both are now “shining lights”.

    Double click video screen and it will play.

    Lyrics: Shining Light
    Roman candles that burn in the night
    Yeah, you are a shining light
    You lit a torch in the infinite
    Yeah, you are a shining light
    Yeah, you light up my life

    You’ve always been a thorn in their side
    But to me you’re a shining light
    You arrive and the night is alive
    Yeah, you are a shining light
    Yeah, you light up my life

    We made our connection
    A full on chemical reaction
    Brought by dark divine intervention
    Yeah, you are a shining light
    A constellation once seen
    Over Royal David’s city
    An epiphany you burn so pretty
    Yeah, you are a shining light

    You are a force, you are a constant source
    Yeah you are a shining light
    Incandescent in the darkest night
    Yeah you are shining light
    My mortal blood I would sacrifice
    For you are a shining light
    Sovereign bride of the infinite
    Yeah, you are a shining light
    Yeah, you light up my life

    We made our connection
    A full on chemical reaction
    Brought by dark divine intervention
    Yeah, you are a shining light
    A constellation once seen
    Over Royal David’s city
    An epiphany you burn so pretty
    Yeah, you are a shining light

    And these are days you often say
    There’s nothing that we can’t do
    Beneath a canopy of stars
    I’d shed blood for you
    The north star in the firmament
    You shine the most bright
    I’ve seen you draped in an electric veil
    Shrouded in celestial light

    We made our connection
    A full on chemical reaction
    Brought by dark divine intervention
    Yeah, you are a shining light
    A constellation once seen
    Over Royal David’s city
    An epiphany you burn so pretty
    Yeah, you are a shining light
    Yeah, you light up my life
    Yeah, you are a shining light
    Yeah, you light up my life

  43. rosettasister Says:

    I love this video, Troy!

    Please repost on new thread, when you have a moment, after I put up new post.


  44. jrinNC Says:

    Here is the web site Cindy created for restoring constitutional rights in Indiana

    Still searching for the link with her pic.

  45. “justanamericancindy” R.I.P. « Rosettasister’s Weblog Says:

    […] Rosettasister’s Weblog Just another weblog « Regulators Seek Trace-like Reporting for Derivatives […]

  46. Troy Says:

    OMG…When I watched the video and read the lyrics and thought of my first Cindy and our JAC, I teared up….I miss them both.

  47. rosettasister Says:

    Please continue posting on this thread.

    But if you’d like to share something about or for Cindy, please post that on new thread.

    If you post something inadvertently on new thread, it’s no biggie!

    New Thread:

    “justanamericancindy” R.I.P.

  48. rosettasister Says:

    thanks, jr!

    I will repost on new thread.


  49. NEConservative Says:

    Great debt illustration:

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