Question for Greenspan: What is an “open-ended fixed-price mutual put”?

Here is a video showing government financial innovation at work. Anyone know what Greenspan's "open-ended fixed-price mutual put" is?

Links from the video:

*****Government (not Wall Street) Financial Innovation Caused 2008 Financial Crisis***** (, April 4, 2011)

Reports from FOMC Meetings (Federal Reserve' s website)
Meeting of the Federal Open Market Committee, March 26, 1991

Alan Greenspan blocked derivative regulation (PBS Frontline, August 28, 2009)

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One Response to Question for Greenspan: What is an “open-ended fixed-price mutual put”?

  1. Robert says:

    Something to allow them to see their foreign currency in the future at an arbitrary time in the future with a locked price?

    What makes it mutual? Maybe the counter party can decide to exercise it as well.. So like say the US has a bunch of euros and they want to lock in a price.. they can get a counter-party to basically say ok - we'll let you sell us your euros for a certain amount of dollars whenever you want - but we also get to trigger the deal any time we want as well.

    I guess the effect of such a transaction would be to hand over the decision of when to sell the euros to the counter-party.

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