Tightening regulation of the credit default swaps market probably will be one of the first tasks on the congressional agenda in 2009.
Sam Leaman of Washington Analysis, Washington, makes that prediction in a new investment note covering the hearings the House and Senate agriculture committees are holding this week on the recent swaps market turmoil.
“The congressional agriculture committees are already at work on preparations for such regulation,” Leaman writes.
The 1999 rewrite of the Commodities Exchange Act explicitly exempted credit default swaps from government regulation, “but that won’t happen this time,” Leaman writes.