by Calculated Risk on 3/06/2010 06:38:00 PM

From Bloomberg: Volcker Criticizes Greek Budget Derivatives ‘Abuse’ (ht jb)

“Surely the recent revelations about the use (and abuse) of complex derivatives in obscuring the extent of Greek financial obligations reinforces the need for greater transparency and less complexity,” Volcker said in the text of a speech to the American Academy in Berlin.

Ouch.

And at the same event, Bloomberg quotes European Central Bank President Jean-Claude Trichet as saying:

“what I fear really is that we are currently underestimating the systemic instability which is associated with” derivatives.

Hopefully a video of Volcker's speech will be available soon.