In recent years, Henry Hu, a finance professor of Texas University, has often been a thorn in the side of the banking world. In his academic research, Hu has repeatedly highlighted the systemic risks created by credit derivatives and other complex instruments.

Most recently, he has expressed alarm about the so-called “empty creditor” problem – or the fact that lenders, such as banks or hedge funds, are increasingly using credit derivatives to hedge in ways that create perverse incentives to tip companies into default.