Richard Bookstaber, an authority on derivative trading, testified before a Congressional Committee in a hearing entitled Regulatory Reform and the Derivatives Market on June 4, 2009. Bookstaber has spent years in risk management at various institutions including Morgan Stanley, Solomon Brothers, Citigroup, Ziff Brothers Investments and Bridgewater Associates. He has also authored several books on the subject of derivatives, most notably A Demon of Our Own Design published in April of 2007 that warned of the possibility of a financial crisis arising from our abuse of derivative products. His testimony was both straightforward and enlightening...