N.Y. Fed’s Derivatives Club Decried by U.S. Pension Plans

A private derivatives regulatory group led by the New York Federal Reserve may weaken rules required by the Dodd-Frank Act, two associations representing large corporate pension plans said.

The panel of international banking supervisors fosters a kind of shadow regulation by dealing only with a “discrete group” of members, the pension plans said in a March 25 letter to New York Fed President William Dudley. The regulators meet at least once a year with buyers and sellers of derivatives including Goldman Sachs Group Inc. and BlackRock Inc.