SECURITIES

Report Warns of Risk in Derivatives: A study concluded that the $12-trillion derivatives market poses serious risk to the U.S. financial system that could force a thrift-style bailout with taxpayers footing the bill. The report warned of “significant gaps and weaknesses” in the system of overseeing the biggest derivatives dealers. It called for laws to tighten control over the market, more disclosure of the firms’ dealings, added safeguards against loss, closer scrutiny of dealers and global coordination of regulators. Banks, brokerages and other industry players disagreed with the conclusions in the 196-page report, saying the recommended changes would harm the U.S. economy.