Gary Gensler

I believe, however, that we need to explicitly have in statute and by rule capital requirements for their derivatives exposure.

We must now do all we can to ensure that this does not happen again.

I mean that was one of the features that I am glad to have the right staff here.

eliminating gaps in the current regulatory system to reduce risk, protect market integrity and promote market transparency by adopting comprehensive regulatory reform for OTC derivatives

I believe that we want to protect the American public, that non-bank derivative dealers do have some capital behind what they are doing.

The American public bears a lot of risk in that crisis that we have lived through.

eliminating cases in which the SEC and CFTC regulate similar products, practices or markets in a different manner when those differences could stifle competition, increase costs or limit investor protection

I look forward to working with the Congress and other Federal regulators to apply comprehensive regulation to both derivatives dealers and the markets in which they trade.

One of the lessons we learned through the crisis is that financial institutions were not only too big to fail, but also too interconnected to be allowed to fail.

Transparency and efficiency would also improve for all end-users if we bring them onto regulated exchanges or trading venues.

One of the lessons out of this crisis is that there were significant gaps of institutions not covered like nondeposit institutions.

I think actually it will enhance liquidity. That when you bring transparency to markets, as was done through the Securities and Exchange Act in the 1930s and the Commodity Exchange Act that enhances market liquidity, it might take some of…

I think that is an excellent question.

I absolutely agree. I believe that a resolution regime should provide legal restrictions on how counterparty assets held by OTC derivatives dealers and other major market participants would be treated in the event of an insolvency.

We must now do all we can to ensure that it does not happen again.

The markets benefit and the public benefits to bring that in.

I believe this exclusion should be revised to make clear that it is not available to foreign banks or their subsidiaries that are not subject to Federal banking oversight.

I think that our two agencies need to do a far better job where we have joint oversight.

I strongly encourage Congress to build off this proposal and enact legislation that will bring even more vital transparency and oversight to this market.

His concern--and I share it--is that over-regulation on the commodity side will simply drive investors to more favorable regimes.

A lot of the pushback is because in an opaque world, a call-around market, et cetera, you make more fees.

I think that end-users will benefit and actually take some of the cost out of the system for them by the transparency.

I have anecdotal thoughts, if I might, if I am allowed to share.

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.