May 7, 1998, the U.S. Commodity Futures Trading Commission, chaired by Brooksley Born, issued the "Concept Release," inviting public comment on the relevance and appropriateness of existing regulations over-the-counter (OTC) derivatives market, a market with a notional value of $ 29 trillion dollars. Release CFTC Concept, often preceded by regulatory proposals sought to analyze "the benefits and burdens of any potential regulatory changes in light of current market realities." Release was not supported by other regulators or the Clinton administration. A few hours after having been published, the U.S. Treasury Robert Rubin, Federal Reserve Board, Alan Greenspan, and the Securities and Exchange Commission Chairman Arthur Levitt announced his "serious concern" about it in an unusual joint press release that minced no words. This case is a battle between the Born, one hand, and a large number of politicians, regulators, legislators and industry representatives, on the other, over how much regulation and control should be applied to market derivative OTC. Birthday failed in its efforts, the OTC derivatives played a central role in the 2008 - 09 financial crisis "Hide
. by Clayton Rose, David Lane Source: Harvard Business School 25 pages. Publication Date: November 4, 2010. Prod. #: 311044-PDF-ENG
Related Case Solutions & Analyses:
Procter & Gamble in the 21st Century (C): Integrating Gillette
By Air or By Sea
Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A)
Cisco
VENTURE CAPITAL/PRIVATE EQUITY FINANCING ASSIGNMENT
EC 320: Economics of Less-Developed Regions
DOW’S BID FOR ROHM AND HAAS
Case Analysis: Strategic Leadership at Coca Cola: The Real Thing
British Satellite Broadcasting versus Sky Television
Nestle
