WASHINGTON (AP) -- While Congress is looking for an immediate solution to the natoin's financial crisis, Securities and Exchange Commission Chairman Christopher Cox is asking lawmakers to also regulate a kind of corporate debt insurance that plays a role in today's problems.
Prices for the insurance soared after the Lehman Brothers' bankruptcy and helped to pushed American International Group to the brink.
In testimony prepared for the Senate Banking Committee, Cox urges regulation of so-called credit default swaps to protect investors and to ensure the operation of fair and orderly markets.
Cox says such regulation should be part of a regulatory overhaul of the nation's financial system, something Congress is not likely to tackle until next year.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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