Briefings

Week InReview: July 27, 2018

Are derivatives sinful?

CFTC Chair J. Christopher Giancarlo, a "devout roman Catholic," and chief economist Bruce Tuckman, responded to Pope Francis's condemnation of derivatives in a letter to the Vatican.

"Messrs. Giancarlo and Tuckman, in the letter, argued for the social utility of derivatives, saying that rather than preying on the vulnerable, derivatives are actually a boon for "the world's poorest farming communities."

The two backed up their rebuttal of the Vatican with detailed descriptions of how, for example, derivatives can help stem boom-and-bust cycles in Madagascar's vanilla-crop prices.

CFTC chair tangles with Vatican over Pope's criticism of derivatives

Read entire Week InReview: July 27, 2018