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IPFS News Link • Economy - International

US Warns EU Derivatives Ban Won't Work

• AP

Europe's threat to ban the sort of financial derivatives trading that some blame for worsening Greece's debt crisis wouldn't work, a senior U.S. official told EU lawmakers Tuesday.

German, French and Greek leaders have called on the EU's executive to crack down on so-called naked credit default swaps, where an investor can profit by taking out insurance on a product he doesn't own. Their call is a swipe at traders taking bets on a falling euro and a Greek default.