CFTC's Gensler stops short of backing spinoff of banks' swaps desks

04/27/2010 | Reuters

Gary Gensler, chairman of the Commodity Futures Trading Commission, called the Senate's bill to overhaul financial regulation a "strong product" but did not lend his support to a proposal that would force banks to divest their swaps operations. Gensler declined to directly comment on the controversial proposal. "I know I'm not answering your question," he said. "There's a perverse outcome of this crisis, that somehow the markets perceive that in the next crisis, these large financial institutions, the taxpayers will stand behind them. And we have to sever that belief."

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