What I have said so far implies that we can stop worrying about corporate governance. Things will take care of themselves nicelythough that doesn't imply the end of conferences about corporate governance! Yet the more I have thought about the interaction of derivatives and corporate governance, the more I doubt that we can be so confident. The coming experiment is going to be interesting, and the conclusions are not forgone. Let me offer a sketch of reasons for this concern. Most are just the opposite sides of the coins I have presented. Consider the use of derivatives to permit managers to hedge their underdiversified financial and human-capital portfolios