[DEBATE] : Radio - Frank Partnoy on credit swaps, derivatives, deregulation,
Riaz K Tayob
riaz.tayob at gmail.com
Wed Apr 15 15:09:51 BST 2009
Frank Partnoy on credit swaps, derivatives, deregulation, Phil Gramm,
CMFA, etc.--nrvu w/Terry Gross
I was listening to this interview on the radio earlier today. Well worth
Sorry, no transcript yet.
Fresh Air from WHYY, March 25, 2009 · Years before the current economic
crisis, law professor and former Wall Street trader Frank Partnoy was
warning about the dangers of risky financial practices.
In his 1997 book FIASCO: Blood in the Water on Wall Street, Partnoy
detailed how derivatives — financial instruments whose value is
determined by another security — were being used and abused by big
financial firms. Partnoy used his experiences as a derivatives trader at
Morgan Stanley to give the book an insider's perspective. In the preface
to FIASCO, Partnoy wrote about the growing influence of derivatives:
"Derivatives have become the largest market in the world. The size of
the derivatives market, estimated at $55 trillion in 1996, is double the
value of all U.S. stocks and more than 10 times the entire U.S. national
debt. Meanwhile, derivatives losses continue to multiply."
Partnoy is a professor at the University of San Diego law school. In
addition to FIASCO, he's the author of Infectious Greed: How Deceit and
Risk Corrupted the Financial Markets.
Partnoy joins Fresh Air to explain derivatives, credit default swaps and
how they led to the current financial crisis.
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