It's substantially different in that some derivatives are equivalent to insurance, but the entities writing those contracts do not meet capital requirements for insurance.
The reason there are capital requirements for insurers is that, without them, you can get "free money" by selling insurance contracts that are backed by nothing. Doing that under another name is just as fraudulent.
Especially in the case of insurers writing such contracts, you don't have to take witness' word for the fact they were evading capital requirements. The contracts and available capital make the whole case.
The reason there are capital requirements for insurers is that, without them, you can get "free money" by selling insurance contracts that are backed by nothing. Doing that under another name is just as fraudulent.
Especially in the case of insurers writing such contracts, you don't have to take witness' word for the fact they were evading capital requirements. The contracts and available capital make the whole case.