markets about which chair brooksley born had warned they traded the mortgage bundles through these new products called credit to swap default swaps or c.d.s. says and they were betting if the c.d.s. would fail or not and when the value of these products was whatever the traders deemed appropriate so if a trader traded one thing in value did it x. and the other trader might value it it why the problem was these things were traded among thousands of traders and financial firms and they were broken apart sliced indicts to the point where nobody knew what the risk was for anyone and regulators had of course not a clue it was the exact type of risk crazy risk in the spring of two thousand and eight the seventy five year old firm bear stearns one under bankruptcy it was a shock to many that this well established firm would take such a deep and devastating dive and it had many of us me included at the time to see if to see wondering what it might mean was there more to come and there was. and it was lehmann brothers which became the financial straw which broke the economy's back for more year

commodity futures trading commission the c f t c chairwoman brooksley born who had come into the clinton administration late in one nine hundred ninety six saw a problem with financial deregulation and critically had huge concerns about unregulated markets called o.t.c. markets or dark markets that sound scary as it should because these were bets on what a stock might be worth in the future be it a day or year or a month or more regulators or had no view was taking place they had no view as to what was taking place and nobody knew what or how much was being wagered nor the exposure the risk that is of the entities engaged in the trading so chair borne work with the p.w.g. the president's working group which included secretary of treasury and chairs of the federal reserve securities and exchange commission and herself the c f t c but none of the others were concerned about dark o.t.c. markets after all clinton nomics was about deregulating not regulating but chair borne didn't let up to see if he issued a proposal just a proposal on how the dark o.t.c. markets might be regulated in a thor