What Does Europe Know About Derivatives Reform That the White House Doesn’t?

April 26, 2010

European policy makers have joined those in the UK in asserting that manufacturers, energy producers and hospitals should not be subject to the same derivatives regulatory regime as large financial institutions. At the same time, the Obama administration has said that it would “fight hard to oppose” provisions that clearly differentiate such companies – known as “end users” – from the likes of AIG and Goldman Sachs. So it begs the question: “What does Europe know about derivatives reform that the White House doesn’t?” The answer: European policy makers have been listening to hundreds of corporate treasurers from companies like Lufthansa and Caterpillar and to the European Association of Corporate Treasurers, who have told them of the great harm that would result from indiscriminate application of derivatives regulations.


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