If derivatives are created to skirt regulations and avoid taxes what is going to change with more taxes and regulations? Perhaps the return of investing in your own company is so poor (R&D, capital improvements, etc), they are left with no choice except to attempt to increase shareholder value with derivatives.
Each and every company on the planet will have a proprietary trading department. My dream job would be Managing Director of Futures and Options Trading at Morton's SteakHouse.
derivatives were originally used as risk elimination tools. a lot of the problems were introduced with the derivatives and commodities modernization act so this would be a good place to look to solve the problem. in relation to the action of trading in derivatives if a company is not performing well. surely they would cease functioning or they would become an investment company.