Problems do not arise simply because a party that is better able to bear risk agrees, for a fee, to assume that risk from a party that is less able to bear it. Instead, problems arise if the parties to the agreement do not understand the risks that they are assuming or have inadequate controls for managing that risk.
Jerome H Powell: A financial system perspective on central clearing of derivatives Speech by Mr Jerome H Powell, Member of the Board of Governors of the Federal Reserve System, at the 17th Annual International Banking Conference “The New International Financial System: Analyzing the Cumulative Impact of Regulatory Reform”, Chicago, Illinois, 6 November 2014.