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Kit Taylor: Derivatives Should Have Been Regulated

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March 25 (Bloomberg) -- The former chief regulator for the $2.69 trillion municipal bond market for the first time acknowledged that the governing board failed to save taxpayers in Detroit, Jefferson County, Alabama, and local California governments from suffering more than $1 billion of losses because of opaque financial instruments that backfired.

Christopher "Kit" Taylor, the executive director of the Municipal Securities Rulemaking Board from 1978 to 2007, said his board wouldn't allow the group to set rules on swaps and derivatives. Many of these deals backfired last year as credit markets seized up, saddling taxpayers with unexpected bills just as the slowing economy reduced tax revenue.

Read the whole story at Bloomberg

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Christopher ``Kit'' Taylor