Blythe Masters Was Just What Regulators Needed

Blythe Masters, the creator of the modern credit-default swap and head of JPMorgan Chase & Co.'s commodities unit, has withdrawn under pressure from an advisory panel at the Commodity Futures Trading Commission. Too bad -- the agency could use her knowledge of derivatives markets. 

Should the fox guard the henhouse? The U.S. has a history of regulating that way. The most prominent case was Franklin Roosevelt's 1934 appointment of Joseph Kennedy, a notorious stock-market manipulator, to lead a brand new Securities and Exchange Commission. Why Kennedy? "Takes one to catch one," Roosevelt said at the time.

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