Michael W. Stocker Led a Panel Discussion on the Role of Over-the-Counter Derivatives in the Financial Meltdown of 2007 and 2008
May 24, 2010
On May 24, 2010 from 1:00 - 2:00 p.m., Michael W. Stocker led a panel discussion during a webcast hosted by West Professional Development.
The webcast entitled, "The Derivatives Debate: The Market Role and the Road to Regulation," examined the role of Over-the-Counter derivatives in the financial meltdown of 2007 and 2008, and discussed the ongoing debate surrounding public and private attempts to reign in this massive market. They looked at pending legislation, regulatory action, and litigation, and provided listeners an assessment of the merits and drawbacks of each approach. With respect to legislative solutions, they focused on the controversial provisions relating to OTC derivatives in the Wall Street Reform Act.
They also took a close look at the first-ever trial in a credit default swap insider trading case, an SEC action against Deutsche Bank trader Jon Paul Rorech. Defendants in the case have argued that because the swaps at issue were private contracts, not securities, the transactions were beyond the reach of the SEC. The results of this trial may have long-term implications for the financial markets and investors worldwide.
The other panelists included: Christian Johnson, professor of law, S.J. Quinney College of Law, University of Utah; Nejat Seyhun, professor of finance, Stephen M. Ross School of Business, University of Michigan; and Arthur E. Wilmarth, Jr., professor of law, George Washington University Law School.