The article reads: 

Corporate users of derivatives are embroiled in a joint push for regulatory action from the US and the European Union. What began as a political response to the crisis may yet be resolved by a political judgement call in Brussels. It remains to be seen to what extent the European Commission and parliament will follow the US down a legislative path that sacrifices economic prudence for headline-catching action against an illusory demon.

The routine mitigation of risk by corporates using derivatives - most commonly for currency, commodity and interest rate exposures that naturally arise within the business - is a mature part of the management process. This is not speculative trading. Nor is there any credible evidence that non-financial sector end-users of derivatives were the source of any systemic risk that caused such damage to the global economy. AIG was of course not a non-financial sector end-user; it was trading and making markets.

The rest of this article can be download in two parts. Read it by clicking these links:

Part 1

Part 2