the blame is being put on the United States for having created this crisis.

You contrast that with the financial services arm of AIG, unregulated, and by virtue of the Commodity Futures Modernization Act unregulated by the states and by the Federal Government.

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 meet that requirement.

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.

CDSs are, in fact, a species of insurance, and naked swaps are more akin to gaming than insurance since they lack insurable interest.

I believe that the Derivatives Markets Transparency and Accountability Act of 2009 goes a long way toward rectifying the inherent problems in our current regulatory framework.

I thank you today, Mr. Chairman and Members of this Committee for your courageous stand and your desire to re-regulate Wall Street.

I can guarantee you, London will regulate this stuff faster than we will regulate it.

put these instruments back on a transparent market like the Chicago Mercantile Exchange.

I congratulate the Committee for its commitment to gain and provide a greater understanding of the importance of credit default swaps.

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 risk on the part of the buyer of the…

It seems to me that if one institution needs hedging and they go to A and A says sure, I will hedge with you, then A has this risk.