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Here are my prepared remarks for the Senate Banking Committee later today.  The hearing starts at 15:00 in Room 538 DSOB (Dirkson Senate Office Building).   Drinks and poetry readings at Kelly’s Irish Times afterward.  — Chris

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Over-the-Counter Derivatives: Modernizing Oversight to Increase Transparency and Reduce Risks

Statement by Christopher Whalen

Committee on Banking, Housing and Urban Affairs

Subcommittee on Securities, Insurance, and Investment

United States Senate

June 22, 2009

Chairman Reed,  Senator Bunning, Members of the Committee:

On Thursday, China Eastern Airlines Corporation Limited (CEA) announced a 2008 full-year net loss of RMB15.3 billion (down from earnings of RMB269 million a year ago), including RMB6.3 billion on oil fuel hedging losses and RMB3.0 billion in impairment losses, from write-downs of acquisition goodwill and older, less fuel-efficient aircraft.

Revenues slumped 3% to RMB41.7 billion on weaker demand as CEA reported a 5.9% decline in passenger traffic and a 280 basis-point decrease in the passenger load factor, while fuel costs jumped 22%.

It’s just about time to troll the floor at the Venetian Ballroom at the hotel of the same name in Vegas, as the Consumer Electronics Show kicks off with a preview of gadgets for press.

Before we do, I thought I’d offer a few thoughts from this afternoon’s opening discussions, led by representatives from the Consumer Electronics Association (CEA), the trade body that puts on the show. In general, there was an upbeat, seemingly Haldol-induced feeling of warmth and positivity about the outlook for the industry, despite the economic winds that rage outside.