Charles Schumer, the US senator who last month called for sanctions against Moody's Investors Service after it failed to disclose errors, has set his sights on the credit derivatives markets by calling for greater regulation to address systemic risks.
In a letter to US regulators including the Securities & Exchange Commission, the Commodities Future Trading Commission and the Federal Reserve Bank of New York, Schumer warned the unregulated credit derivatives market, with about $58 trillion (â¬37 trillion) in outstanding credit default swaps, is "capable of posing a devastating risk to the regulated financial system."
