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Credit Derivatives

EU Watchdog Accuses 13 Banks Of Derivatives Collusion

AP | Posted 07.01.2013 | Business

BRUSSELS -- The European Commission says many of the world's largest investment banks appear to have colluded to block attempts by exchanges to trade ...

Mark Gongloff

Derivatives Are Weapons Of Slow Economic Destruction

HuffingtonPost.com | Mark Gongloff | Posted 06.14.2013 | Business

We have learned, painfully, of the damage derivatives can do to an economy in a financial crisis. But derivatives are hurting the economy even on its ...

Warning! Wikipedia Will Make Your Financial IQ Drop (Update)

Janet Tavakoli | Posted 03.07.2013 | Business
Janet Tavakoli

If you want to know why relying on information supplied on the internet by anonymous strangers is a bad idea, look no further than Wikipedia's articles on finance.

JPMorgan's Mystery Deal

Reuters | Posted 01.08.2013 | Business

Nov 8 (Reuters) - JPMorgan Chase & Co has reached an agreement in principle with the staff of the U.S. Securities and Exchange Commission to resolve...

Wall Street Reformers Unwittingly Turn Derivates Market Over To Robots

The Huffington Post | Mark Gongloff | Posted 11.06.2012 | Business

We've seen how well robots handle stock trading, why not give them the keys to the credit-derivatives market, too? There may not be much choice: As...

'This Could Get Ugly In A Hurry'

The Huffington Post | Mark Gongloff | Posted 07.11.2012 | Business

The news on Wednesday that cities and states are suing some of the world's largest banks over Libor manipulation shows how this scandal could blow up ...

JPMorgan Strategy Shift May Have Led To Huge Loss

AP | MARCY GORDON | Posted 08.05.2012 | Business

WASHINGTON (AP) — JPMorgan Chase had weak controls in place to contain risk in its investment division that suffered a $2 billion-plus trading loss,...

Why Another Major Collapse Is Still Possible

Bloomberg View | Matthew Schoenfeld | Posted 06.01.2012 | Business

Bloomberg View: The near-failure of insurance firm American International Group Inc. (AIG) in 2008 was arguably the most perilous moment of the glo...

D.M. Levine

Derivatives Cassandra On JPMorgan: Told You So

HuffingtonPost.com | D.M. Levine | Posted 05.15.2012 | Business

To Brooksley Born, JPMorgan Chase's trading blowup looks a lot like the Long-Term Capital Management debacle of 14 years ago. It's "happening all o...

Jamie Dimon's SNAFU: JPMorgan's Other Derivatives' Losses

Janet Tavakoli | Posted 07.12.2012 | Business
Janet Tavakoli

The United States is trying to pull out of the greatest financial tailspins in its history. Dice-rolling braggadacio by a key officer at one of the nation's largest banks is exactly the kind of thing Congress, taxpayers and voters should find scary.

Mark Gongloff

3 Ways Dodd-Frank Could Have Saved JPMorgan $2 Billion

HuffingtonPost.com | Mark Gongloff | Posted 05.11.2012 | Business

Somebody throw some water on the irony meter because it's burning up: JPMorgan could have been spared the embarrassment and pain of its $2 billion tra...

Mark Gongloff

JPMorgan Chase Admits Big Losses On 'Egregious' Credit Trades

HuffingtonPost.com | Mark Gongloff | Posted 05.11.2012 | Business

JPMorgan Chase has suffered big, unexpected losses at a closely watched trading desk, providing fodder to supporters of a new financial regulation the...

Jason Linkins

SEC 'Courageously Assails' Small Ratings Agency, Leaves Downturn Culprits Unmolested

HuffingtonPost.com | Jason Linkins | Posted 05.03.2012 | Business

If you're like me, you may have noticed the curious way our Wall Street watchdogs tend to operate. For example, a comparison: Harry Markopolos can gif...

Derivates Torpedoed The U.S. And Apparently Europe, Too: Study

The Huffington Post | Mark Gongloff | Posted 04.27.2012 | Business

Complicated credit derivatives turned the financial crisis into a catastrophe back in 2008. Now comes a study claiming evidence that these financial i...

Greece and Credit Default Swaps: Bucking the ISDA Cartel

Janet Tavakoli | Posted 05.03.2012 | Business
Janet Tavakoli

The disputes over credit default swaps on Greece highlight the fact that most participants in the credit derivatives market are at the mercy of ISDA when it comes to interpretation of ISDA's language. The only solution to that is to exercise one's rights.

Credit Derivatives and Leverage Sank Jon Corzine's MF Global

Janet Tavakoli | Posted 01.04.2012 | Business
Janet Tavakoli

Ratings downgrades will trigger increased margin calls. This is all business as (un)usual. What isn't usual is diverting money from segregated customer accounts. It's too late to blame "sloppiness, bookkeeping, or accounting."

Today's Silver Scandal

Janet Tavakoli | Posted 07.06.2011 | Business
Janet Tavakoli

If anyone thinks that the Commodity Futures Trading Commission (CFTC) has the right stuff to regulate the commodities markets, look no further than its failure to check manipulation in the silver market.

Legerdemath: Tricks of the Banking Trade

Omer Rosen | Posted 05.25.2011 | Business
Omer Rosen

I'd just turned 20 when I began a three-year stint on Citigroup's corporate-derivatives team. I had no work experience to speak of. As my boss said after my interview, I was "f***ing unpolished."

Washington Abandons Greece: Beware of Geeks Bearing Grifts

Janet Tavakoli | Posted 05.25.2011 | Business
Janet Tavakoli

The European Union is shocked -- shocked I tell you! -- that Greece used financial engineering to qualify for admission. Exactly how did they think that weaker countries managed to meet the requirements?

Defusing "Financial Weapons of Mass Destruction"

Jason Paez | Posted 05.25.2011 | Business
Jason Paez

Buying a five year naked CDS is like buying life insurance on a stranger. It is not legal for individuals and should be treated similarly for companies.

Washington's Bipartisan Betrayal: The 2015 Global Financial Crisis

Janet Tavakoli | Posted 05.25.2011 | Business
Janet Tavakoli

The economy did not just have a heart attack; we are suffering from financial appendicitis. Instead of doing the necessary surgery, Congress is prescribing potent addictive painkillers.

Jason Linkins

Bloomberg Reports Derivatives Regulatory Legislation Contains Large Loopholes

HuffingtonPost.com | Jason Linkins | Posted 05.25.2011 | Business

Hey kids! Were you holding out hope that someone might do something to robustly regulate the derivatives market that wrought such wrack and ruin to th...

Responding to Goldman Sachs

Janet Tavakoli | Posted 05.25.2011 | Business
Janet Tavakoli

If Wall Street -- and especially Goldman Sachs -- had not manufactured value-destroying securities and related credit derivatives, the money supply for bad loans would have been choked off years earlier.

We Don't Need a New Version of the Glass-Steagall Act

Georges Ugeux | Posted 05.25.2011 | Business
Georges Ugeux

I tend to believe that the Glass-Steagall approach, an institutional way to address the question, overlooks the importance of a market response.

Goldman Sachs Responds To The New York Times

Janet Tavakoli | Posted 05.25.2011 | Business
Janet Tavakoli

Did Goldman Sachs dissemble and equivocate in its responses to the New York Times?