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Credit Default Swaps

Goldman Sachs Will Earn $1 Billion If CIT Fails; U.S. Taxpayers Will Lose $2 Billion

Financial Times | By Henny Sender and Saskia Scholtes | Posted 05.25.2011 | Business

Goldman Sachs stands to receive a payment of $1bn -- while US taxpayers would lose $2.3bn -- if embattled commercial lender CIT files for Chapter 11 b...

Financial Crisis Inquiry Commission: What Is the Proper Role of Banks in Our Society?

Marshall Auerback | Posted 05.25.2011 | Business
Marshall Auerback

We ban all sort of risk-taking behavior, whether it be drug use, speeding, or drinking underage. Why not ban behavior that puts our financial system at risk and deprives people of their homes, their pensions, and their livelihoods?

Goldman Sachs Fueled AIG's Risky Gambles

Wall Street Journal | SERENA NG and CARRICK MOLLENKAMP | Posted 05.25.2011 | Business

Goldman Sachs Group Inc. played a bigger role than has been publicly disclosed in fueling the mortgage bets that nearly felled American Insurance Grou...

The Moral Compass Missing From The Greatest Trade Ever

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

As much as anything, what killed Lehman was Dick Fuld's emasculation of the risk management function, which served as a moral compass.

Wall Street Is More of a Threat to Obama's Domestic Agenda than Afghanistan

Joseph A. Palermo | Posted 05.25.2011 | World
Joseph A. Palermo

Whatever Obama decides to do in Afghanistan is of little consequence compared to Wall Street's ongoing "plutonomy."

Regulating Systemic Risk and Banker Compensation Will Not Fix What Is Broken on Wall Street

David Paul | Posted 05.25.2011 | Business
David Paul

The incentives to make big bets and take big risks has survived, but without the accountability. Today, the US Treasury and the Fed are trying to hold the pieces together. But why?

Life Insurance -- Bankers' New Best Friend

Christopher Brauchli | Posted 05.25.2011 | Business
Christopher Brauchli

This latest financial instrument is a guaranteed win-win almost for sure.

ReThink Review: American Casino -- Gambling on Timebomb Loans

Jonathan Kim | Posted 05.25.2011 | Entertainment
Jonathan Kim

When you hear terms that sound very technical like "credit default swap" and "reverse redlining", it's easy for part of your brain to shut off. I was guilty of this myself.

Credit Swaps Are Back En Vogue As Market Rebounds

Huffington Post | Posted 05.25.2011 | Business

Credit-default swaps -- the financial instrument that helped bring down AIG and played a key role in causing the biggest financial crisis since the 19...

Half Measures and Lukewarm "Reform" Won't Save the Middle Class

Joseph A. Palermo | Posted 05.25.2011 | Politics
Joseph A. Palermo

Let's hope that when Obama speaks Congress he outlines not only a bold program to provide health care for all Americans, but also a set of proposals to lift the middle class out of its currently dismal economic condition.

Markopolos: Credit Default Swaps Bigger Scam Than Madoff

New York Post | Posted 05.25.2011 | Business

HARRY Markopolos -- the whistleblower on Bernie Madoff who proved to be much smarter than the SEC -- says there are evildoers out there who will make ...

New Bill Targets Credit Default Swaps

Reuters | Rachelle Younglai and Charles Abbott | Posted 05.25.2011 | Business

WASHINGTON (Reuters) - Congress will consider steps to curb speculation in the $39 trillion credit default swaps market and could prohibit investors f...

There is No Such Thing as a 'Naked Credit Default Swap'

Max Keiser | Posted 05.25.2011 | Business
Max Keiser

There is no such thing as a 'naked credit default swap.' Buying and selling avatars on Second Life using virtual money has more economic legitimacy.

Too Little, Too Late For Derivatives Oversight

Jill Keto | Posted 05.25.2011 | Business
Jill Keto

Derivatives are a problem of breathtaking scale that cannot be cleaned up with a quick government fix.

The Greening of Goldman Sachs

David Paul | Posted 05.25.2011 | Business
David Paul

The US economic turnaround may not be complete. The AIG turnaround may not be complete. The GM turnaround may not be complete. But Goldman Sachs is back.

The Mystery of the Missing Unemployed Man: On Jobs and Banks

Barbara Garson | Posted 05.25.2011 | Business
Barbara Garson

People are speculating on derivatives and derivatives of derivatives because there's no action in the real world.

Are Our Financial Markets Being Manipulated?

Danny Schechter | Posted 05.25.2011 | Business
Danny Schechter

Market manipulation are actions by rogue and not so rogue players who, working alone or together, unduly influence the way our supposed "free" markets function.

The Wall Street Journal Glosses Over the Pitfalls of Credit Default Swaps

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

Credit default swaps are insurance without the normal restraints imposed traditional insurance. Normally, you are not supposed to insure an asset that you do not own.

Financial Crisis: Clinton's Role

Washington Post | Ezra Klein | Posted 05.25.2011 | Business

I think Bill Clinton makes a persuasive case that it was what he didn't do, rather than what did do, that contributed to the financial crisis. There a...

Regulating Credit Default Swaps: The Fight Over The Last Remaining Source Of Huge Banking Profits

Institutional Risk Analytics | Herbert Gold Society | Posted 05.25.2011 | Business

Despite bringing the world economy to its knees and costing taxpayers hundreds of billions of dollars in bailouts for events such as Bear Stearns, Leh...

Ryan Grim

Liddy Unsure If AIG Wrote Credit Default Swaps on GM, Chrysler Debt | Ryan Grim | Posted 05.25.2011 | Business

Edward Liddy, chairman of American International Group, told a congressional oversight panel Wednesday that he did not know if AIG had issued credit d...

Stress Test for U.S. Banks Is a Complete Fraud

Sheldon Filger | Posted 05.25.2011 | Business
Sheldon Filger

It is the fear of the derivatives toxin that has frozen credit markets, leading to the Global Economic Crisis. Geithner's stress test can't fix the calamitous state of the U.S. banking sector.

Credit Default Swaps: First SEC Investigation Into Complex Securities

24/7 Wall Street | Posted 05.25.2011 | Business

Insider trading has a new face. Credit default swaps, long one of the least understood and least regulated sets of financial instruments can be used f...

The Fake Out: Imitating Regulation in the Era of Madoff

Harry Moroz | Posted 05.25.2011 | Business
Harry Moroz

The Senate is capable of making activity illegal that the general public already assumes is illegal.

Field of Dreams: Fantasy Finance Meets Fantasy Baseball

Les Leopold | Posted 05.25.2011 | Business
Les Leopold

Bernie Madoff, -- the Babe Ruth of fantasy finance -- is in a league of his own. His Ponzi scheme simply did away with all the fuss and bother of investments.