Then who is going to supply derivatives to business customers who need to buy them?
“Then who is going to supply derivatives to business customers who need to buy them?”
Investment banks. A revival of GS might keep commercial banks out of that sector. Although I think the greater problem might be from commercial banks owning derivatives rather than supplying them.
Derivatives at least need to trade on a transparent market so that the quantity and valuation of derivatives isn’t hidden from view, particularly from bank regulators.