On The Absence Of Regulation Of Financial Derivatives In The U.S. At The End Of 20th Century

The 2008 financial crisis caused serious losses to the United States,which was a very painful lesson for the United States.Subsequently,the crisis also spread to other countries,resulting in economic damage to most countries in the world.The formation of the crisis has a factor that can’t be ignored,that is,the federal government of the United States of America on the financial derivatives regulation of the absence.Financial derivatives,as a new financial instrument that has been developing vigorously in recent decades,have brought huge economic benefits to the American financial industry as well as considerable risks to the financial market.Through the study of the absence of financial derivatives regulation,this paper analyzes the regulatory attitude of the government’s internal regulatory agencies towards financial derivatives,and probes into the reasons for the absence of financial derivatives regulation.The thesis consists of five parts: introduction and four chapters.Since modern financial derivatives were first produced and developed rapidly in the United States,chapter one systematically reviews the birth and development of financial derivatives in the United States as well as the advantages and disadvantages of financial derivatives,paving the way for the following content.The second chapter is an important part of the article,which discusses the disadvantages of financial derivatives trading after the development and expansion of the financial derivatives market in the1990 s.U.S.regulators for the regulation of financial derivatives divided,with the commodity futures trading commission chairman Brooks,led by a request for more regulation,Bonn,led by the federal reserve chairman Alan Greenspan,the other party for believe that the market mechanism will play a role on their own,against meddling in the financial derivatives market.To this,two sides launched game.The outcome of the game is that the side advocating deregulation wins and further proposes to confirm the legal certainty of OTC financial derivatives through legal means.Therefore,the third chapter is the legal embodiment of the game results.The historical origin of the unclear division of labor,the passage of the law without twists and turns complicated process,in a very short period of time smoothly passed by the two houses,the clearprovisions of the deregulation of financial derivatives constitute the content of this chapter.The impact of the passage of the law constitutes the final chapter.The adoption of the commodity futures modernization law has led to the rapid development of the OTC derivatives market in an almost unregulated environment,which has caused problems caused by the rapid development.Just a few years after the commodity futures modern act was passed,OTC derivatives trading grew rapidly.The abuse of OTC derivatives caused chaos in the United States financial industry,and soon the financial crisis came.In terms of the supervision of financial derivatives,the absence of supervision of financial derivatives by government regulatory agencies has laid a hidden danger for the outbreak of the financial crisis in 2008.