It eliminates the legitimate justification for a hedge. Not as described by the parent. His problem was that they were creating the financial instruments and

It eliminates the legitimate justification for a hedge. Not as described by the parent. His problem was that they were creating the financial instruments and the hedges. This is exceedingly common. I'll leave the moral outrage portion of your post alone with hopes that you already know how you vastly oversimplified simply by ignoring counterparties.