"CDSs are, in fact, a species of insurance, and naked swaps are more akin to gaming than insurance since they lack insurable interest."
"the goals of this draft bill would be best realized and enacted by the states; whether the CFMA was overbroad in its intent and application"
"I am pleased to be here today on behalf of NCOIL to discuss draft legislation titled the 'Derivatives Markets Transparency and Accountability Act of 2009.'"
"This discussion is not only appropriate but, perhaps, sadly overdue."
"I think we agree that a group of states together in either compact or with model legislation would come up with a national standard that could be used."
"I would argue that they are trilateral contracts in that you and I and the 300 million Americans have stepped up to the plate to provide the backstop on many of these contracts."
"I certainly don't dispute the fact that credit default swaps play an important role in our financial institutions, but they are insurance, they are a financial guaranty and ought to be treated as such..."
"Those who have no insurable interest, frankly, I would continue to argue, are purely speculative, and add nothing of value to the real economy."
"I believe we do, and the superintendents of the various states together with NAIC, which is their organization, in conjunction with NCOIL would certainly be able to put standards in place that would m..."
"I think it is, Mr. Chairman, and we would certainly love to work with you and the Committee and Congress on that."
"I would just like to note that the argument that naked CDSs, as I would define them, that don't provide any hedge at all but are purely speculative, aren't a tool for risk management since there is no..."
"I just can't imagine the regulatory arbitrage problems that we would have if we broadened this to 50 jurisdictions within the United States."