Blythe Masters<\/u><\/a> in 1994 which gained a lot of limelight in the early 2000s.\u00a0<\/b><\/p>By the year 2007, the value of CDS was estimated at around $62 trillion which was more than the combined value of mortgages, U.S Treasuries, and the stock market.\u00a0<\/b><\/p>
The biggest concern for investors with CDS was that there was no regulatory body to manage them.<\/b><\/p>
In the 2008 crisis, the CDS could not cover the amount of default due to which the Federal Reserve Of the United States had to intervene to resolve the issue.\u00a0<\/b><\/p>
In 2009, The Dodd-Frank Wall Street Report Act was introduced to regulate the CDS market.\u00a0<\/b><\/p>
This Act phased out the riskiest credit swaps and also disallowed the banks and financial institutions from utilizing customer deposits to invest in credit swaps and other derivatives.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t