Rules for derivatives could cost corporations, analysts say

10/8/2009 | Bloomberg Businessweek

Rules proposed in Congress to require the clearing of most standard derivatives through clearinghouses could prove an expensive procedure for corporations, analysts said. Corporations use over-the-counter derivatives for hedging. Germany's Siemens estimated that clearinghouse processing would cost an extra $1 billion in cash reserve, and the U.K.'s Rolls Royce calculated that it would need $4 billion. "It's causing treasurers to lose sleep," said Tim Sangston, managing director of Greenwich Associates.

View Full Article in:

Bloomberg Businessweek

Published in Brief: