1.   For their part, the banks argue that their examiners already scrutinize derivatives activity.

2.   Hershey was shifted under the reorganization to run hedging and derivatives activities in the municipal department.

3.   The agency is considering whether it should regulate more closely derivatives activities by smaller institutions, municipalities or mutual funds.

4.   The Fed also seems to be asserting that it has the power and the will to supervise derivatives activity of banks without new legislation covering the market from Congress.

5.   The report also criticized several executives for failing to supervise derivatives activity.

6.   HongKong and Shanghai Banking Corp. has been authorized by the Philippine Monetary Board to engage in financial derivatives activities, it was announced Monday.

7.   Until now, the derivatives activities of banks, securities firms and other dealers have largely avoided SEC and CFTC scrutiny.

8.   The GAO report urged legislation to expand supervision and control of the derivatives activities of brokerage firms and insurance companies.