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Tag Archives: CDS

AIG’s CDO stuffing

William Cohan, author of “House of Cards” and a Bloomberg Television contributing editor, talks with Deirdre Bolton and Erik Schatzker about how collateralized debt obligations helped drive American International Group Inc. to the brink of disaster. Also today the Federal Reserve released the details of the Maiden Lane holdings… which includes the dreck described in […]

Summary of amendments to the Dodd draft

Amendments to Dodd bill – HT — Shahien at Huffpo

The world is running out of fiscal space

This is what global hot money sounds like… or put differently the “globalization of capital flows”… moving funds between asset classes and currencies to take advantage of changes in valuations and relative returns. Does this type of financial activity add to nation’s wellbeing or does it just represent a “skimming” of a  nation’s productive capacity? […]

Unraveling the profit puzzle at Goldman Sachs II

The bits and pieces are being assembled into a mosaic which is revealing the true enablers of the global credit crisis… And it’s the trading houses like Goldman Sachs who created financial products, sold them off and then bet against the products they originally created… and often these bits of wizardry were designed to live off […]

Political economy collides with capitalism…

Professor Joseph Stiglitz and Spanish Ambassador to the UK Carles Casajuana argue with a Hugh Hendry (of Electica Asset Management) who is betting on the Euro currency falling and failing.  Recorded from Newsnight, 09 February 2010. (HT 0/Hedge) From Project Syndicate: ~~~ “… We have compared the performance of the best-performing and worst-performing euro-zone countries between […]

Roosevelt and Obama

From a recently published academic paper: “Populist Retribution and International Competition in Financial Services Regulation” Adam C. Pritchard University of Michigan Law School ~~~ “… The bottom line for Roosevelt was that populist anger against the bankers provided him with the political capital he needed to fundamentally reshape the financial sector in the United States. Roosevelt succeeded […]

Derisking the banking system

Senate hearing on prop trading – Feb 2, 2010 Source: PROHIBITING CERTAIN HIGH-RISK INVESTMENT ACTIVITIES BY BANKS AND BANK HOLDING COMPANIES Senate Banking Committee Hearing: Tuesday, February 2, 2010 , 02:30 PM 538 Dirksen Senate Office Building The witness will be: The Honorable Paul Volcker, Chairman of the President’s Economic Recovery Advisory Board. Honorable Neal […]

Larry Summers and derivatives

A lot of threads related to our financial crisis come together in the form of Larry Summers and derivatives. Actions taken out of a fear of global instability and ignorance of the potency of leveraged bets using derivatives weave through this story. It’s a long list of damage caused by Wall Street banks and derivatives […]

“In cases like this, the outcome is always along the lines of 50, 60 or 70 cents on the dollar”

~ We still don’t know why the Federal Reserve paid 100 cents on the dollar to the counterparties of AIG… the mystery is another mark against the “too big to fail” banks and their closely woven interconnection with the Federal Reserve … Bloomberg reminds us of a comparable closeout of a swaps transaction around the same time […]

Proof of Trillin’s thesis

~~ OMG… Bird and Fortune prove Trillian’s thesis… and a few commonly held beliefs… (HT ZeroHedge) Link to Bird and Fortune video at the Financial Times…