May 6, 2010

Gensler Pushes for No Fed Lending to Derivatives Clearinghouses

By Matthew Leising

Gary Gensler, chairman of the Commodity Futures Trading Commission, said derivatives and securities clearinghouses shouldn’t have access to emergency Federal Reserve lending because it would loosen risk standards.

Gensler, whose panel oversees U.S. derivatives trading and clearinghouses, said a section of the Senate financial reform bill that would grant such lending “should be deleted,” according to a letter he sent today to Senators Christopher Dodd and Blanche Lincoln. Clearinghouses don’t have access to Fed lending because they are not insured depository institutions...

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Last Updated: August 5, 2010