CSPAN3 June 20, 2012
think would have been important in the context of the loss is that in the rule, a bank would be required to provide a plan in advance, explaining how the hedge was going to be done, how it was going to work. it would be necessary to have an auditing process to make sure that, in fact, that was being followed. that there were adequate risk management and governance rules to oversee the process. and it would be necessary that compensation for the executives involved in the management of the position would not be such that it would incentivize them to make proprietary positions. so one ...