``The decision by New York regulators to turn a blind eye to the CDS market allowed the underlying value being traded with credit-default swaps to grow to over $45 trillion. This is 10 times the value of the credit obligations that CDS contracts reference, according to University of Texas Professors Bernard Black and Henry Hu. This disproportion results from the use of credit-default swaps not only as insurance but also for speculation. This wouldn't be possible if credit-default swaps were considered insurance and an indemnity or insured-interest requirement were applied.''

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