John Walsh, acting comptroller of the currency, said regulators' efforts to revamp the global derivatives market risk a "vast overreaction." "Lack of understanding feeds misperception, and derivatives are not particularly well understood, even by some top policymakers," Walsh said. "I'm not trying to suggest that this isn't a big market or that it doesn't involve sizable risks, but the risk ascribed to derivatives is often many orders of magnitude greater than the reality."

Related Summaries