ND20 Alert: Braintruster Rob Johnson testifies today on derivatives reform

Today, the House  Financial Services Committee is having an important hearing on OCD derivatives. Rob johnson, Director of the Economic Policy Initiative for the Roosevelt Institute, is testifying on the question of systemic regulation of these tricky financial products. While many on the panel will testify to the impact of derivatives reform harming their business, Johnson will discuss the need to reduce the profitability of unregulated commerce to provide for a transparent and well-capitalized fiancial system.

Why it matters: Derivatives reform is the key to too-big-to-fail policy. In Johnson’s view, it is not possible to shut down a large, insolvent, entangled firm when officials do not know the pattern of, and value of exposures.

Stay tuned for more ND20 updates.