Systemic risk is an issue for the regulators of the institution. The regulator should work to assure that institutions under their watch manage their risk appropriately. Systemic risk is not created by the credit derivative but of particular uses of such instruments. A total ban on all credit risk shifting because certain uses present systemic risk is unwise. A bullet in the head is not a cure for cancer. Consider dealing with the problem surgically.
An appointee of the governor of NY??