The Dodd-Frank Financial Regulation Bill and Derivatives

Under the Dodd-Frank financial regulation bill, the SEC will now regulate to an extent the use of derivatives by mutual funds, exchange-traded funds and pension plans.

There is a major question whether this was needed. It may cut some risks. But there is no question that the regulation will definitely add to investor costs and performance.

Of course, this is a solution to something that had never before been a factor that resulted in any previous financial meltdown or problem. Still, Congress in its magisterial wisdom saw fit to fill up 2300 pages of superfluous diktat to satisfy its reason for political being.

You can be absolutely certain, and I will repeat this over and over: All the Dodd-Frank Financial Regulation Bill will ever do is create so much uncertainty, it will detract from American business, investment and consumer interests and jobs, while only benefiting the income of trial lawyers.