“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.