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October 11, 2011

Bold, Reckless, Foolish or all of the above

“Banks Increase Holdings in Derivatives,” blared the headline.  Hard to believe that this is happening just 3 years after the financial meltdown, as the article also noted:  “The derivatives industry — which allows banks, hedge funds and corporations to both hedge risk and speculate on market fluctuations – was at the center of the financial crisis.” 

Rules might be coming, but that’s not stopping banks from loading up on derivatives while the markets are still unregulated. 

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