The Journal reported in April that hedge funds and other
  investors were making bets in the credit-default swap
  markets to take advantage of volatility that stemmed from
  the trades done by Mr. Iksil, who worked out of the Chief
  Investment Office.

After everything that's happened, they're still allowed to play the CDS lottery? I'm really disappointed regulators haven't put a stop to this.

For a great insight into the role of CDS'es in the recent economic events, I highly recommend this documentary:

http://www.pbs.org/wgbh/pages/frontline/money-power-wall-str...