Wednesday, November 16, 2011

Dodd-Frank Regulation of Derivatives

There is a major question whether the Dodd-Frank financial regulation was needed to regulate the use of derivatives by mutual funds, exchange-traded funds and pension plans.

It may cut some risks. But there is no doubt the regulation will definitely add to investor costs and diminish 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 wisdom saw fit to fill up 2300 pages of superfluous verbiage.

You can be absolutely certain, 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. ( See the Earl J Weinreb NewsHole® comments.)

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