In Defense of Derivatives: From Beer to the Financial Crisis

  1. Rules that treat derivatives in isolation are unlikely to reduce the overall risk of individual financial firms or the financial system.
  2. Rules that make derivatives harder to use will reduce derivatives risks; but the reduction will be at the expense of increasing business risks.

 

http://www.stern.nyu.edu/programs-admissions/global-degrees/ms-risk-management-executives/news/defense-derivatives-beer-financial-crisis-professor-bruce-tuckman

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