Mar 12, 2010

"Sen. Jack Reed, D-R.I., stressed again today he wants to limit exemptions for businesses that use derivatives for commercial purposes despite intense opposition from industry lobbyists wanting to keep it as unregulated as possible.

Reed, chairman of the Banking Securities, Insurance and Investment Subcommittee, said he is trying to provide relief based on the purpose of the trade rather than give exemptions on the basis of what a company does.

"The approach we are taking is trying not categorical exemption. ... We're looking for basically an exemption that focuses on the economic transaction, more hedging against a real economic risk," said Reed in comments before at the Consumer Federation of America's annual assembly."

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