--Eleni Himaras
The specter of corporates defaulting on their derivative trades is being raised as lawmaker efforts to grant margin exemptions to the Dodd-Frank Act appear to have lost steam. In the worst-case scenario that could mean end users not having the cash to meet margin calls and trades being extinguished because of the default. Some also worry that an exemption for corporates—not their trading counterparts—would see dealers jack up the prices.
The worries come despite Senators Chris Dodd (D-Conn.) and Blanche Lincoln (D.-Ark.) ....