Sen. Allard: OTC credit derivatives market trades on an “immature” level

Sen. Wayne Allard (R-Colo.) says that the recent turmoil in the credit markets and the demise of Bear Stearns has caused many to scrutinize the role of credit derivatives and the banks exposure to the “potentially risky” financial statements. Allard also says that the OTC credit derivatives market is still relatively new and trades on a market that lacks substantial infrastructure and transparency. (1:24)
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Sen. Reed: Credit derivatives market continues to grow exponentially

Chairman Jack Reed (D-R.I.) talks about the credit derivatives market and how it has continued to grow since its inception, not only in trading volume and total value outstanding contracts, but also in its potential risk. Reed says that this tremendous growth occurs in an environment of incidental regulation and an infrastructure that has not “kept pace” with trading volumes and product complexity. (0:46)
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