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Chris Dodd's Personal Take On Risk Management

The Chairman of the Senate Banking Committee gave a little glimpse into the thought processes coming from the Washington braintrust as they craft risk management legislation. While keeping people alerted to the possibility that the bailout beast may hiccup again and throw some support CIT's way, Dodd also offered his two cents on the topic of risk management and the rationale behind the need for things like the CFPA.

"There is an important signal for shareholders and others out there who invested their resources and have been hurt terribly by what's happened," Dodd said. As an investor, "I'd want to know whether we're keeping the same people around that watched the value of my investments decline so precipitously."

Evidently having completely unhedged long exposure is the hallmark of prudent risk management that all forthcoming regulation should seek to enhance.