I saw a good Frontline documentary on this the other day, http://www.pbs.org/wgbh/pages/frontline/warning/view/ apparently this whole mess started back in the 90's and the head of the CFTC then, Brooksley Born, wanted to put rules in place then to make the derivatives more transparent but was vehemently opposed by Greenspan, Rubin, and Summers. Turns out that the current head of the CFTC, Gary Gensler was one of the deputies of the three guys opposing any regulation of derivatives in the 90's. The three actually went so far as to get a law passed saying that the CFTC couldn't regulate derivatives.
Bottom line is anyone that acts surprised by the lack of regulation shouldn't be because Congress voted on and passed a law specifically prohibiting regulation of derivatives in the 90's. A law that was promoted by the same people who now run all the US government agencies like CFTC, Treasury etc...
Bottom line is anyone that acts surprised by the lack of regulation shouldn't be because Congress voted on and passed a law specifically prohibiting regulation of derivatives in the 90's. A law that was promoted by the same people who now run all the US government agencies like CFTC, Treasury etc...