Archive for the ‘Credit Derivative Swaps’ Category
Posted by Larry Doyle on March 27th, 2013 6:17 AM |
Here we go again.
With the investigation of the greatest financial fraud ever perpetrated on Wall Street — that being the manipulation of Libor — still in the early stages, news emanating from Europe this morning redirects the shadow from that organized activity into the dark and dank world of credit derivatives, aka CDS.
Recall that cornerstone principles of an industry that operates as an oligopoly are: (more…)
Tags: barriers to entry, CDS, collusion in CDS market, credit derivatives, how does an oligopoly work, imperfect information, ISDA, Markit, price fixing on Wall Street, sharing of information, Wall Street oligopoly
Posted in CDS, collusion, Credit Derivative Swaps, General, oligopoly | 2 Comments »
Posted by Larry Doyle on April 29th, 2011 11:46 AM |
Earlier this month I inquired Did Wall Street Violate the Racketeering Act? in regard to the rampant abuses centered on Wall Street institutions involved in the mortgage foreclosure travesty. That commentary written on April 4th generated the strongest and most vocal reaction to any commentary I have written since the inception of Sense on Cents in January 2009. (I encourage you to scan the comments to that article to gain a sense of the pain and anguish felt by so many in our nation today!)
Today I repeat the question.
“Did Wall Street Violate the Racketeering Act …Again??” in regard to the pricing and potential manipulation of the credit derivatives market? Why has Wall Street fought the legislative and regulatory proposals to bring greater transparency into this corner of the casino? Why does Wall Street want to maintain its hegemony over the cash cow known as ‘credit derivatives’? Let’s navigate across the pond and review a probe of Wall Street’s CDS business by the EU. The European Union put out this official press release this morning: (more…)
Tags: abusing a dominant position on Wall Street, antitrust investigations on Wall Street, Bank of America's CDS business, Barclays CDS business, BNP Paribas CDS business, CDS, CDS bank dealers, Citigroup CDS business, collusion on Wall Street, Commerzbank CDS business, controlling financial information on Wall Street, Credit Agricole CDS business, credit derivatives manipulation, Credit Suisse First Boston CDS business, Deutsche Bank CDS business, did Wall Street violate the racketeering act, EU press release April 29 2011, Europa site, Europa website, Goldman Sachs CDS business, how does Markit work, HSBC CDS business, is Wall Street on the up and up, JP Morgan CDS business, lack of transparency on Wall Street, market manipulation, Markit, Morgan Stanley CDS business, mortgage foreclosure abuses, organized activity on Wall Street, practices to the detriment of competitors on Wall Street, price controls on Wall Street, RBS CDS business, Royal bank of Scotland CDS business, Societe Generale CDS business, transparency in derivatives business, UBS CDS business, Wall Street racketeering, Wall Street's CDS business, Wells Fargo CDS business, what is hegemony, what is Markit, what is RICO Act
Posted in Credit Derivative Swaps, derivatives, General | 8 Comments »
Posted by Larry Doyle on May 17th, 2010 3:39 PM |
Does Michael Barnier, the European Union’s financial services commissioner, read Sense on Cents? If he doesn’t, he should. Why?
Today he touched upon an approach to dealing with credit derivatives which Sense on Cents made months ago. Bloomberg highlights, CDS Traders Face Disclosure Requirements in Europe,
Sovereign credit-default swap transactions face mandatory disclosure rules in the wake of the Greek debt crisis, the European Union’s financial services commissioner said today. (more…)
Tags: Angela Merkel, CDS, credit derivatives risk, Michel Barnier, michel petite, nicolas sarkozy, sovereign credit default swaps, sovereign credit derivatives, TRACE
Posted in Credit Derivative Swaps, General | 1 Comment »
Posted by Larry Doyle on March 9th, 2009 3:35 PM |
A great American and loyal reader (thanks FL) shared a report recently produced by not-for-profits Essential Information and The Consumer Education Foundation. This report, Sold Out: How Wall Street and Washington Betrayed America, has gotten little to no attention in the general media. What a shame. I find of particular interest the fact that a number of the currently discussed regulatory changes are directly addressing the points highlighted in this report. I personally view these proposed regulatory changes as substantiating this report and adding credibility to its effort. For the naysayers in the audience, I would ask you to review the report and reconsider your assessment.
I was struck a month ago by the incriminating statements put forth by Senator Chuck Hagel and CIA head Leon Panetta, which I highlighted on February 16th in Legalized Bribery. Those statements bluntly indict our massive system of lobbying, political fundraising, and the quality of those running for elected office! In light of that article, I am more and more convinced that our elected officials have turned their offices into massive for profit machines at the expense of our public well being.
I commend the authors of this report, Roger Weissman and James Donahue, for taking the time and making the extensive effort to expose the truth. The full report, 231 pages in length, spares no detail. In studying it, I found the information and analysis riveting. Let me try to summarize it for you. (more…)
Tags: Arthur Levitt, California electricity crisis, CFTC, Chris Cox, Chuck Hagel, Citibank, derivatives, Enron, Essential Information, Fannie Mae, FDR, Freddie Mac, Glass-Steagall, greed, James Donahue, Leon Panetta, media complex, Merrill LYnch, off-balance sheet accounting, Paul Volker, Phil Gramm, President Clinton, regulation, Roger Weissman, The Consumer Educational Foundation, Travelers, Wall Street, Washington
Posted in American Consumers, Bank Failure, Banking Institutions, Barack Obama, Business, Christopher Dodd, Chuck Hagel, Chuck Schumer, Congress, Credit Derivative Swaps, Current Affairs, Democratic Party, Economy, Education, Equity Markets, Fannie Mae, FINRA, Freddie Mac, General, Housing Crisis, Insurance Industry, Leon Panetta, Lobbyists, Obama Administration, Rahm Emanuel, Republicans, Reputation, Wall Street | 14 Comments »
Posted by Larry Doyle on March 6th, 2009 9:03 PM |
Under pressure from Congress this week to release the names of AIG’s creditors, the Federal Reserve’s Vice Chairman Donald Kohn clearly got the message. The Fed has acquiesced in releasing that Top U.S., European Banks Got $50 Billion in AIG AID.
My immediate reaction to this news is how interesting that the bulk of these institutions are European. What does that tell me? These European banks were getting plowed by Wall Street with a lot of sub-prime backed CDOs and when the dam was breaking they wanted to hedge their position. Market speculation is that European institutions own twice the amount of toxic assets as U.S. based institutions. That exposure on top of their delinquent loans in eastern Europe is crushing a number of western European banks. Who are they? Start by looking at the list, included in the above-referenced article, of AIG creditors.
In providing the hedge – which is the insurance – AIG received a fat premium but has been paying for it ever since. Actually, AIG only truly paid for it up until last September . . . the American taxpayer has been and will continue to be paying for it for a long time. Where were the regulators when we really needed them?
LD
Tags: AIG, CDO, Donald Kohn, Federal Reserve, Insurance, Toxic Assets, western European banks
Posted in Business, Commerce, Credit Derivative Swaps, Eastern Europe, Economy, European Union, Wall Street | 4 Comments »
Posted by Larry Doyle on March 2nd, 2009 9:50 AM |
Stock markets are expected to open lower by another 1.5% on the open this morning. What’s driving them lower….again?
1. News that AIG reported an actual 4th quarter 2008 loss of $61 billion. The government will inject ANOTHER $30 billion into this black hole. WHY? Very simply because AIG is the largest holder of CDS (credit default swaps) that serve as insurance for a number of banks and money managers. These CDS cover a wide array of assets but primarily the sub-prime mortgage space. Kevin Doyle of 12th Street Capital, and a guest here on my weekly No Quarter Radio program back in early January, shares that the index that tracks the sub-prime market is at its lows. No surprise there.
While the various media outlets are highlighting this story now, I wrote extensively about AIG and How Does One Lose $125 Billion? on February 24th. I not only wrote about the losses, but also delved into the culture that developed over the years at AIG under Hank Greenberg. Not a pretty picture and seemingly not a lot of integrity in that company. Now we pay. (more…)
Tags: 12th Street Capital, AIG, credit derivatives, Hank Greenberg, Household Finance, HSBC, Sense on Cents, stock markets, sub-prime mortgage market, Warren Buffett
Posted in American Consumers, Business, Credit Derivative Swaps, Current Affairs, Economy, Employment, Equity Markets, Global Finance, Government funds, Housing Crisis, Wall Street, Warren Buffet | 16 Comments »
Posted by Larry Doyle on December 29th, 2008 6:38 PM |
I thought about providing an outlook for 2009. I considered offering further opinions on Obama’s economic plans. Perhaps a review of the Bush economic program would be well received. Then yesterday, the lead editorial in my local newspaper asked “Where did the bailout money go?” I had my answer. In previous pieces I have touched upon why I thought there was a very good chance why this money would not flow through the system. I hesitate to continue to refer back to my piece published on November 12th (The Wall St. Model is Broken…and Won’t Soon be Fixed), but for new readers I do firmly believe it is as good as anything I have read or seen in any publication in explaining how we find ourselves in our current position.
Please allow me to digress for a second. I will admit that I am not a movie buff, but I do enjoy films that focus on the success of underdogs, have a measure of financial intrigue, or perhaps a combination of the two. Not surprisingly, a few of my favorite movies are, Rocky, Jerry Maguire, and The Sting.
(more…)
Tags: banks hoarding cash, banks witholding credit, credit losses, credit losses within banks, expected losses on loans, losses on commercial real estate, losses on corporate loans, losses on credit cards, losses on loans, losses on residential mortgages, where's the money?, why aren't banks lending
Posted in American Consumers, Bailout, Banking Institutions, Credit Card companies, Credit Derivative Swaps, Deficit, Economy, General, Mortgages | 2 Comments »
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