Derivatives, No Longer 'WMD,' Gaining Respect

April 12, 2010

They've been derided by Warren Buffett and feared by regulators, but some advisers are convincing clients that derivatives are helpful. Back in 2002, when AIG was still in that ultra-exclusive Triple-A-rated club and its financial strength seemed all but unbreakable, the billionaire signaled an ominous warning in Berkshire Hathaway's annual report: 'Derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.'

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