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FOR IMMEDIATE RELEASE

PRESS CONTACT: Steven Chlapecka - schlapecka@ppionline.org, T: 202.525.3931

NEW PPI POLICY BRIEF: THE RISKS OF OVER-REGULATING END-USER DERIVATIVES

THE RISKS OF OVER-REGULATING END-USER DERIVATIVES WASHINGTON, D.C. - July 7, 2011 - With the nation's job market still stuck in the doldrums, the last thing our economy needs are well-intentioned but unnecessary regulations that would stifle the still-nascent recovery.

In PPI's newest policy brief released today, "The Risks of Over-Regulating End-User Derivatives," Jason Gold and Anne Kim explain how well-intentioned, but potentially overreaching, regulation of the derivatives market could choke off capital and job creation in industries that had nothing to do with the crisis of on Wall Street. They also describe the difference between the derivatives used by companies to manage risk and the kinds of speculative trades that regulators are right to limit.

"Imposing 'margin' requirements and other overly tough regulations would unnecessarily burden American companies," write Gold and Kim. "It would tie up capital that would otherwise be directed to investment and hiring, drive up the cost of producing goods and services and ultimately cost."

As long as the economy remains weak, regulators need to stay smart and avoid pitfalls that slow growth.

To access the full brief, visit: http://bit.ly/mUZh2v

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The Progressive Policy Institute (PPI) is an independent research institution founded in 1989 that seeks to define and promote a new progressive politics in the 21st century. Through research, policy analysis and dialogue, PPI challenges the status quo and advocates for radical policy solutions.

For additional information, contact Steven Chlapecka at schlapecka@ppionline.org or 202.525.3931.


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