Washington - The failure of lawmaker and regulators to beef up the regulation of derivatives is responsible for triggering Orange County, Calif.'s financial troubles and subsequent bankruptcy filing, Rep. Jim Leach, chairman-elect of the House Banking Committee, said last week.

"Washington's failure to provide adequate oversight of the derivative market was at the heart of this week's bankruptcy filing," the Iowa Republican said in a speech last week to a General Accounting Office conference on banking.

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