The Costs of Regulating Derivatives

So the outgoing chair of ISDA complains that banks will have to pass on the costs of Dodd-Frank to end users of derivatives. Undoubtedly the usual crowd -- primarily the WSJ op-ed page -- will run with this evidence of yet another hit to American competativenes coming out of Dodd-Frank.

But maybe we could stop and consider if this simply means that users of derivatives will now incur the true costs of their trades, and will no longer be subsidized by the Treasury.