Derivatives

Clinton Signs Commodity Futures Modernization Act, Cementing Derivatives Deregulation

| Importance: 10/10

President Bill Clinton signed the Commodity Futures Modernization Act (CFMA) into law on his last day before Christmas recess, completing the deregulation of the derivatives market that Brooksley Born had warned against two years earlier. The legislation, inserted into a 10,000-page authorization …

Bill Clinton Lawrence Summers Phil Gramm Alan Greenspan Wall Street derivatives dealers derivatives deregulation cfma financial-crisis credit-default-swaps +1 more
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Phil Gramm Inserts 262-Page CFMA into 11,000-Page Spending Bill Hours Before Christmas Recess

| Importance: 9/10

In the early evening of Friday, December 15, 2000, with Christmas recess only hours away and the presidential election still unresolved, the U.S. Senate rushes to pass an essential 11,000-page government reauthorization bill. Senator Phil Gramm of Texas inserts a complex 262-page amendment - the …

Phil Gramm U.S. Senate U.S. House of Representatives Bill Clinton Enron Corporation derivatives cfma legislative-corruption enron-loophole lame-duck +2 more
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President's Working Group Recommends Exempting $80 Trillion Derivatives Market from Regulation

| Importance: 9/10

The President’s Working Group on Financial Markets issues a unanimous report recommending that over-the-counter derivatives be explicitly exempted from federal regulation, directly repudiating CFTC Chair Brooksley Born’s 1998 warnings about systemic risk. The report is signed by Treasury …

Lawrence Summers Robert Rubin Alan Greenspan Arthur Levitt Bill Rainer +1 more derivatives deregulation cfma financial-crisis regulatory-capture +2 more
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Lawrence Summers Becomes Treasury Secretary, Accelerates Derivatives Deregulation Campaign

| Importance: 8/10

The U.S. Senate confirms Lawrence Summers as the 71st Secretary of the Treasury, replacing Robert Rubin and continuing the aggressive deregulation agenda. Summers had spent the previous year as Deputy Secretary orchestrating opposition to derivatives regulation, including making an “irate …

Lawrence Summers Bill Clinton Robert Rubin U.S. Senate Wall Street Derivatives Dealers treasury derivatives deregulation revolving-door financial-crisis +2 more
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Time Magazine Celebrates "Committee to Save the World" While They Block Derivatives Regulation

| Importance: 8/10

Time Magazine publishes its February 15, 1999 edition featuring Treasury Secretary Robert Rubin, Deputy Secretary Lawrence Summers, and Federal Reserve Chairman Alan Greenspan on the cover as “The Committee to Save the World,” celebrating their management of the 1997-1998 Asian and …

Robert Rubin Lawrence Summers Alan Greenspan Time Magazine Brooksley Born derivatives deregulation financial-crisis media-propaganda regulatory-capture +2 more
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Brooksley Born's Derivatives Regulation Warning Systematically Suppressed

| Importance: 10/10

CFTC Chair Brooksley Born issued a concept release seeking public comment on regulating the $29 trillion over-the-counter derivatives market, warning of systemic risks from unregulated trading. Within hours, Treasury Secretary Robert Rubin, Federal Reserve Chairman Alan Greenspan, and SEC Chairman …

Brooksley Born Robert Rubin Lawrence Summers Alan Greenspan Arthur Levitt derivatives cftc regulatory-capture financial-crisis systemic-risk +2 more
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CFTC Chair Wendy Gramm Exempts Enron from Derivatives Regulation, Joins Board Five Weeks Later

| Importance: 9/10

On her final day as Chair of the Commodity Futures Trading Commission, Wendy Gramm approves a regulatory exemption allowing Enron to trade energy derivatives without CFTC oversight. The exemption, granted on January 14, 1993 (some sources cite January 21, the final day of the George H.W. Bush …

Wendy Gramm Phil Gramm Enron Corporation CFTC Commodity Futures Trading Commission Kenneth Lay derivatives corruption revolving-door enron energy-trading +3 more
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