Over-the-counter, over the top from Marketplace on Vimeo.
Marketplace Senior Editor Paddy Hirsch gives a good introductory explanation of how CDS and exchange and OTC markets work in this video… (running time 6:45)
~~~~ ” …What Geithner and Fed Chairman Ben Bernanke failed to tell the Congress, President-elect Barack Obama and the American people is that CDS dealers don’t post any effective collateral at all with other dealers. So much for the legal requirements for safety and soundness in 12 CFR. If Barack Obama and the Congress ever [...]
Tuesday, November 25, 2008
The derivatives news is flowing out… everyone is focused on the problem and pushing solutions… excellent… this monster will likely not be slayed but will suffer severe damage… keep beating friends…
“Creditex and Markit today announced the compression of $1.036 trillion in notional value of credit default swap (CDS) transactions since the successful launch of a [...]
Monday, November 24, 2008
The WSJ.com reports ~~~~ ” Amid the uncertainty that Sept. 16, Millennium Partners LP, a hedge fund with $13.5 billion in assets, asked to pull out $800 million of the more than $1 billion of assets it kept at Morgan Stanley, according to people familiar with the withdrawals. Separately, Millennium had also shorted Morgan Stanley’s [...]
Monday, November 24, 2008
GSE Nation
View SlideShare presentation or Upload your own. (tags: cds regulation)
Chris Whalen’s, of Institutional Risk Analytics, excellent presentation about banks, bank regulation, CDS and the way forward…
Friday, November 14, 2008
Excellent progress today on the CDS front…
From BBG: ~~~~ “The Fed, Commodity Futures Trading Commission and Securities and Exchange Commission signed memorandum of understanding (MOU) today that they said will provide consistent oversight of the clearinghouses and the credit-default swap market. The group laid out guidelines they said would provide more public information on potential [...]
Tuesday, November 11, 2008
My comment in response to a WSJ.com article about a speech by CFTC Acting Chairman Lukken about reforming the financial markets regulatory structure…
% % %
Having read Commissioner Lukken’s speech where he calls for the creation of a “systemic risk” regulator I really must object to the heart of his argument… he says…
“This new (proposed) structure would require certain reporting [...]
Another Sunday night awaiting the word of the crisis resolution team at the Federal Reserve on Liberty Street…
It’s AIG this time… other Sundays we awaited word of the fate of Bear Stearns, Lehman Brothers, AIG-1, Goldman Sachs and Morgan Stanley… you would think Tim Geithner and his staff deserved some time off… if this is [...]
Saturday, November 8, 2008
Is AIG a Bear or a Lehman?
The counterparty pressure on AIG for CDS collateral must be enormous… they are at the Treasury trough again… who are the counterparties and why don’t they take preferred debt instead of cash for collateral?
Silly Cate… if AIG doesn’t get more cash to give to Goldman Sachs and Morgan Stanley [...]
This chart is from an Economist article on risks to the financial system from credit default swaps (CDS)…
The title of the chart says it all… “Treacherous Waters“… check out the exponential rise in counterparty risk in 2 years… this is nuclear risk…
~~~~ “… As rising defaults trigger CDS payments, the effect on other markets is likely [...]