Monday, April 28, 2014

Banks moving swaps overseas

The WSJ reports today (disclosure: I'm quoted in the article) that banks are moving their swap businesses (in particular credit default swaps) overseas. According to the article, this move could be to avoid the stricter regulatory environment in the US. While some see this as potentially reducing risk here in the US, others worry that risk isn't being reduced but rather just shifted around. 

What do you think?

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