Derivatives Self-Regulation? No Thanks

Thought-provoking stuff – and great quotes – in a new Satyajit Das piece on the regulation of derivatives:

The industry will argue for self-regulation, which bears the same relationship to regulation that self importance does to importance.

And another on Wall Street’s blood-sucking soullessness with respect to derivatives:

The sheer importance and size of derivative profits means that it will continue to attract the best and the brightest who will continue to play these time honoured games [of making them more opaque and complex].

Warren Buffet once described bankers in the following terms: “Wall Street never voluntarily abandons a highly profitable field. Years ago… a fellow down on Wall Street…was talking about the evils of drugs…he ranted on for 15 or 20 minutes to a small crowd…then…he said: “Do you have any questions?” One bright investment banking type said to him: “yeah, who makes the needles?

Lots more here, all of which is punchy and worth reading.