I think that the oversight of the financial institutions who are swap dealers would still be the traditional prudential regulators.
They would still be fully regulated but regulated through the dealer regulation.
I believe that we want to protect the American public, that non-bank derivative dealers do have some capital behind what they are doing.
A lot of the pushback is because in an opaque world, a call-around market, et cetera, you make more fees.
The markets benefit and the public benefits to bring that in.
The American public bears a lot of risk in that crisis that we have lived through.
I do believe that we need to do more on this regard, that customer accounts need, if they post margin, need to be properly segregated.
It is probably $0.05 a million cubic foot.
I think our financial regulatory system failed, so I would look forward to working with however Congress addresses this issue.
I have anecdotal thoughts, if I might, if I am allowed to share.
I am certainly committed to meeting with the clearing members and users.
Bureaucracies set up to regulate corporations end up protecting corporations.
We have a fundamental crack or a problem in our foundation here in that the system designed to hedge risk, to ameliorate risk, actually has ...
His concern--and I share it--is that over-regulation on the commodity side will simply drive investors to more favorable regimes.
I think that is an excellent question.
I couldn't agree more with the Chairman. We are talking about a paradigm shift here.
I, like you, have met with a lot of energy companies in these last 5 weeks, and I think that we can achieve both goals.
I think that end-users will benefit and actually take some of the cost out of the system for them by the transparency.
