A new derivatives villain emerges

Greenspan’s guru on derivatives

“”An even bigger reason to resist the reappointment of Bernanke is his appointment of Pat Parkinson to be the new head of supervisionParkinson was Greenspan’s guru on derivatives. Of course, the great benefit of customization of derivatives is the elimination of margin, which is safe enough as long as the Fed will contribute taxpayer money whenever anything goes wrong. The Fed does not protect customers, or the safety and soundness of the institutions, or the taxpayer. Nothing MUST be protected except permission for the institutions the Fed allegedly supervises to keep their freedom to avoid the standardization that might make possible the creation of an honest market from the ruins of what Parkinson defends.”

Suffice to say that many of Parkison’s views on OTC derivatives, which you may see for youself on the Fed’s web site, are seemingly identical to the views of the lobbyists for the large OTC dealer banks. Perhaps we are missing something, but to us Parkinson seems to typify the term “regulatory capture” and specifically the tendency of the Fed’s Washington staff to serve as advocates for the large NY dealer banks, rather than serving the broad public interest.”

Another view of this person: Patrick Parkinson: A Case Study in How to Get Promoted at the Fed | zero hedge

This seems like a step in the wrong direction.

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