Today, he is emerging as one of the nation’s archreformers, pushing to impose some of the most stringent new financial regulations in history. And as the head of the Commodity Futures Trading Commission, the leading contender to oversee the complex derivatives contracts that played a central role in the financial crisis and, in turn, the Great Recession, he is in a position to influence the outcome.
It may seem an unlikely conversion, but it is one that has won the approval of Brooksley E. Born, of all people, a former outspoken head of the commission. She sounded alarms more than a decade ago about the dangers hiding in the poorly understood derivatives market and was silenced by the same Washington power brokers that counted Mr. Gensler as a member.
Mr. Gensler opposed Ms. Born, according to people who worked at the commission in the 1990s, and in 2000 played a significant role in shepherding through Congress deregulation measures that led to explosive growth of the over-the-counter derivatives market.
That was then. These days, Ms. Born is convinced of Mr. Gensler’s reformist zeal, as he takes on Wall Street in what is becoming one of the fiercest battles over regulation in the postcrisis era.
“I think he is doing very well,” she said in an interview. “He certainly seems to be committed to robust oversight of derivatives and limiting excessive speculation and leverage.”
The proposals championed by Mr. Gensler, if adopted by Congress, would substantially alter what is now a largely unregulated market in over-the-counter derivatives, financial instruments used by companies and investors to protect themselves and bet on moves in variables, like interest rates or currencies, and to speculate.
The proposals include forcing the big banks that sell derivatives to conduct their trades in the open on public exchanges and clear them through central clearinghouses, so that any investor can see the prices that dealers charge their customers. Today, those transactions are bilateral and private.
Muslim Academy on 04 Sep 12The Silsilah Dialogue Movement is a Filipino movement in Mindanao that aims to unite Christians and Muslims, as well as other people of different religion and faith. Prof. Alzad Sattar is proud to be a member and Muslim coordinator of the Inter-faith Council of Leaders in Basilan. He took up Political Science in Basilan State College and had his Masters Degree in the University of the Philippines. He became a professor in Basilan State College since 1996. Presently, he is the Assistant Dean of Academic Support and Services and Dean of the College of Islamic Studies. He is also an active participant and member of non-government organizations that promote peace and harmony like the Silsilah Dialogue Movement. As a child born in the city of Basilan, he believes that this place is very beautiful. Despite of this harmonious scenery with its natural white beach and sea resources, for him, Basilan has a large diversity when it comes to cultures and religions between the people living in this paradise. He hopes that someday this diversity would surpass through the help of the Dialogue. The following are some excerpts and inspiring keys mentioned by Prof. Alzad Sattar in an interview in the Silsilah Dialogue Movement: What was the impact of Silsilah Dialogue Movement to you as person? Prof Sattar: Silsilah actually transformed a lot in me as a person. I remember in the past, I had biases and prejudices against Christians because of a lot of factors. Number one factor is the orientations that I had, that Christians are like this and that and the second factor was the situation that I had experienced. I was born during the Martial law and at that time, many of my relatives died. The people who killed them are the Philippine soldiers who happened to be Christians. This contributed to my perception about the Christians. One factor that also contributed in my biases is the books I read. Like what I said, I was a PolSci graduate and because of that I rea
