Credit Default Swaps: Frequently Asked Questions (CRS Report for Congress)
A full-text PDF of the latest version is currently unavailable.
| Release Date |
Revised Dec. 22, 2009 |
| Report Number |
RS22932 |
| Report Type |
Report |
| Authors |
Edward Vincent Murphy, Specialist in Financial Economics; Rena S. Miller, Analyst in Financial Economics |
| Source Agency |
Congressional Research Service |
| Older Revisions |
-
Premium Revised Sept. 9, 2008 (6 pages, $24.95)
add
-
Premium July 30, 2008 (5 pages, $24.95)
add
|
Summary:
This report defines credit default swaps, explains their use by banks for risk management, anddiscusses how they may have contributed to systemic risk. It also examines legislative proposalsto address risks from credit default swaps. Among the bills to regulate credit default swaps andother derivatives is H.R. 4173, in its Title III section on over-the-counter derivatives, whichpassed the House of Representatives with various amendments on December 11, 2009. In theSenate, the Committee on Banking, Housing and Urban Affairs has released a committee printdraft of a comprehensive financial reform bill that includes legislation to reform OTC derivatives.Senator Jack Reed, who chairs the Senate Banking Subcommittee on Securities, Insurance, andInvestment has introduced S. 1691 to regulate the OTC derivatives markets, including CDS.Senator Blanche Lincoln, the chair of the Senate Agriculture Committee, which sharesjurisdiction over derivatives with the Senate Committee on Banking, Housing and Urban Affairs,has also indicated an intention to introduce legislation reforming regulation of OTC derivatives.For broader background on reform of the OTC derivatives market as a whole, please see CRSReport R40965, Key Issues in Derivatives Reform, and CRS Report R40646, DerivativesRegulation in the 111th Congress, Derivatives Regulation in the 111th Congress. This report will beupdated as conditions warrant.
