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Keyword: derivatives

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  • $500 Trillion in Derivatives “Remain an Important Asset Class”: Hilariously, the New York Fed

    05/13/2017 8:20:06 AM PDT · by Lorianne · 18 replies
    Wolf Street ^ | 13 May 2017 | Wolf Richter
    Oh, and the unintended consequences of trying to regulate a monster. Economists at the New York Fed included this gem in their report on a two-day conference on “Derivatives and Regulatory Changes” since the Financial Crisis: Though the notional amount [of derivatives] outstanding has declined in recent years, at more than $500 trillion outstanding, OTC derivatives remain an important asset class. An important asset class. A hilarious understatement. Let’s see… the “notional amount” of $500 trillion is 25 times the GDP of the US and about 7 times global GDP. Derivatives are not just an “important asset class,” like bonds;...
  • Wall Street Backs Blockchain for Savings on Derivatives

    01/10/2017 6:11:06 PM PST · by TigerLikesRooster · 3 replies
    WSJ ^ | Jan. 9, 2017 | Telis Demos
    Wall Street Backs Blockchain for Savings on Derivatives DTCC chooses startup Axoni to use the tech behind bitcoin to track payouts between big banks Telis Demos Jan. 9, 2017 A big Wall Street middleman is bringing in the technology behind the digital currency bitcoin to try to save banks tens of millions of dollars on fees for derivatives trades. Following a series of tests last year, the Depository Trust & Clearing Corp. has picked startup Axoni to use a blockchain—the networking system originally created to move digital currencies—to start tracking credit-derivatives payouts between big banks by early next year, the...
  • The Coming Dollar Shortage

    12/28/2016 2:09:58 PM PST · by BDParrish · 25 replies
    Daily Trade Alert ^ | December 24, 2016 | Jm Rickards
    In my forthcoming book The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, I make a very simple point: In 1998 we were hours away from collapse and did everything wrong following that. In 2008, we were hours away from collapse and did the same thing. Each crisis is bigger than the one before. The stock market today is not very far from where it was in November 2014. The stock market has had big ups and downs. There was a big crash in August 2015, followed by a big crash in January 2016. Followed...
  • U.S. Government Is Now a Major Counterparty to Wall Street Derivatives

    04/24/2016 7:43:59 PM PDT · by Lorianne · 19 replies
    Wall Street on Parade ^ | 21 April 2016 | Pam Martens and Russ Martens
    According to a study released by the Federal Reserve Bank of New York in March of last year, U.S. taxpayers have already injected $187.5 billion into Fannie Mae and Freddie Mac, two companies that prior to the 2008 financial crash traded on the New York Stock Exchange, had shareholders and their own Board of Directors while also receiving an implicit taxpayer guarantee on their debt. The U.S. government put the pair into conservatorship on September 6, 2008. The public has been led to believe that the $187.5 billion bailout of the pair was the full extent of the taxpayers’ tab....
  • It's The Final Meltdown...(economic collapse)

    08/26/2015 12:33:19 PM PDT · by SatinDoll · 20 replies
    The Market-Ticker ^ | August 28, 2015 | Karl Denninger
    Oh yes, remember the banks cleaned up their balance sheets and closed all those pesky derivative trades.... Right? "NEW YORK – This spring, traders and analysts working deep in the global swaps markets began picking up peculiar readings: Hundreds of billions of dollars of trades by U.S. banks had seemingly vanished." “We saw strange things in the data,” said Chris Barnes, a former swaps trader now with ClarusFT, a London-based data firm." Except.... they didn't vanish. They went overseas, but are still there. Just remember, it was CDS and IR products that blew up the world last time, and you...
  • Greek banks 'to stay shut on Monday'

    06/28/2015 10:10:25 AM PDT · by tcrlaf · 144 replies
    BBC News ^ | 6-28-2015 | BBC News
    Greece banks to stay closed on Monday, Piraeus Bank chief says, after emergency meeting in Athens This breaking news story is being updated and more details will be published shortly
  • Deutsche Bank Exodus Continues As Real Estate Chief Leaves For Blackstone

    06/15/2015 7:29:04 PM PDT · by george76
    Zero Hedge ^ | 06/15/2015 | Tyler Durden
    Earlier this month, Deutsche Bank’s co-CEOs Anshu Jain and Jürgen Fitschen were shown the door ... Jonathan Pollack, the bank’s global head commercial real estate, is leaving after 16 years. ... Pollack's departure comes just one month after the bank's head of structured finance Elad Shraga left to start his own fund. Shraga was instrumental in helping Deutsche become "an award-winning arranger of asset- and mortgage-backed debt." Shraga had been with Deutsche Bank for 15 years. All of this seems to lend credence to the idea that Deutsche Bank may be in trouble. The employee exodus appears to be gathering...
  • Is Deutsche Bank The Next Lehman?

    06/12/2015 12:29:07 PM PDT · by SeekAndFind · 10 replies
    Zero Hedge ^ | 06/12/2015 | NotQuant
    Submitted by NotQuant.comLooking back at the Lehman Brothers collapse of 2008, it’s amazing how quickly it all happened.  In hindsight there were a few early-warning signs,  but the true scale of the disaster publicly unfolded only in the final moments before it became apparent that Lehman was doomed.First, for purposes of drawing a parallel, let’s re-cap the events of 2007-2008:There were few early indicators of Lehman’s plight.   Insiders however, were well aware:   In late 2007, Goldman Sachs placed a massive proprietary bet against Lehman which would be known internally as the “Big Short”.  (It’s a bet that would later profit from during...
  • MUST READ:Global Bail-In Plan Could Still Leave Taxpayers Holding the Bag

    03/10/2015 6:03:55 PM PDT · by RaceBannon · 12 replies
    American Banker ^ | MAR 4, 2015 10:00am ET | CHRISTOPHER WHALEN
    BEWARE OF THE BAIL_IN The Government tells the banks to grab your assets to fill their coffers when they are insolvent, the way they took GREECE money The Banks are going to call YOUR money UNSECURED DEBT Now, Look at the first paragraph: http://www.americanbanker.com/bankthink/global-bail-in-plan-could-still-leave-taxpayers-holding-the-bag-1073068-1.html
  • Cramer: The gigantic oil crash that hasn't occurred

    03/13/2015 6:43:03 AM PDT · by thackney · 11 replies
    msn ^ | Jim Cramer
    We keep waiting for the bust, the gigantic rollover of oil companies that just plain collapse under their own weight and the $50 price that you get for West Texas Intermediate. It hasn't happened. We keep waiting for the junk bond market that is riddled with $200 billion in oil and gas paper to be crushed by defaults and restructurings. It hasn't been. In fact, the iShares iBoxx $ High Yield Corporate Bd, the high-yield exchange-traded fund that includes a lot of this suspect paper, is pretty much unchanged for the last three years and has enjoyed a sustained rally...
  • Austrian Bank On The Edge! Derivatives Is 10 Times The Size Of The Global Economy

    01/28/2015 1:49:24 PM PST · by alexmark1917 · 18 replies
    Last year Austria's largest bank, Erste Bank, sent shudders of Credit Anstalt through the European Banking System. This year it is Austria's 3rd largest bank that is scaring investors senseless. On the heels of the Swiss National Bank's decision to un-peg from the Euro, Raiffeisen Bank's Swiss-Franc-Denominated mortgage worries have resurfaced (along with Russian/Ukraine writedowns) and nowhere is that more evident than the total collapse of the bank's bonds (from over 95c to 65c today). Even after the ECB Q€ (and some apparent intervention to weaken the Swissy) bonds kept free-falling. Perhaps, The Freedom Party's demands for a bailout will...
  • Rickards: Brace For Financial Storm 6x Larger Than 2008

    01/21/2015 12:09:48 PM PST · by alexmark1917 · 38 replies
    Over the coming months, I believe we could see an economic meltdown at least six times the size of the 2007 subprime mortgage meltdown... The next financial collapse, already on our radar screen, will not come from hedge funds or home mortgages. It will come from junk bonds, especially energy-related and emerging-market corporate debt. The Financial Times recently estimated that the total amount of energy-related corporate debt issued from 2009-2014 for exploration and development is over $5 trillion. Meanwhile, the Bank for International Settlements recently estimated that the total amount of emerging-market dollar-denominated corporate debt is over $9 trillion. Energy-sector...
  • France Terror Heading to US, Oil Crash Equals Market Crash, Obama’s Phony Recovery

    01/11/2015 6:50:55 PM PST · by Lorianne · 12 replies
    You Tube/ USA Watchdog ^ | 08 January 2015 | Greg Hunter
    video 15:10
  • Fed and Congress Signal Trouble, Putin Defends Russia, ISIS War

    12/19/2014 12:38:05 PM PST · by GilGil · 10 replies
    USAWatchdog ^ | 12/19/2014 | Greg Hunter
    My top story is the economy, and I think the Fed and Congress just signaled that something is seriously wrong, and it’s going to get worse. First off, the Federal Reserve just came out and said that it was going to be “patient” when normalizing the monetary policy. I know Wall Street is jubilant and the stock market spiked on the news, but I think this is really ominous, and it is nothing to be celebrated. To me, that means don’t expect the Fed to raise interest rates anytime soon because the economy is much worse than what they are...
  • Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For

    12/12/2014 6:25:55 AM PST · by coloradan · 57 replies
    Zerohedge ^ | 12/12/2014 | Zerohedge
    Courtesy of the Cronybus(sic) last minute passage, government was provided a quid-pro-quo $1.1 trillion spending allowance with Wall Street's blessing in exchange for assuring banks that taxpayers would be on the hook for yet another bailout, as a result of the swaps push-out provision, after incorporating explicit Citigroup language that allows financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp, explicitly putting taxpayers on the hook for losses caused by these contracts. Recall: (more at link)
  • Plummeting Oil Prices Could Destroy The Banks That Are Holding Trillions In Commodity Derivatives

    12/08/2014 10:10:30 AM PST · by SeekAndFind · 43 replies
    The Economic Collapse Blog ^ | 12/08/2014 | Michael Snyder
    Could rapidly falling oil prices trigger a nightmare scenario for the commodity derivatives market? The big Wall Street banks did not expect plunging home prices to cause a mortgage-backed securities implosion back in 2008, and their models did not anticipate a decline in the price of oil by more than 40 dollars in less than six months this time either. If the price of oil stays at this level or goes down even more, someone out there is going to have to absorb some absolutely massive losses. In some cases, the losses will be absorbed by oil producers, but many...
  • New Law Would Make Taxpayers Potentially Liable For TRILLIONS In Derivatives Losses

    12/07/2014 4:30:18 PM PST · by dontreadthis · 28 replies
    The Economic Collapse ^ | December 7th, 2014 | Michael Snyder
    If the quadrillion dollar derivatives bubble implodes, who should be stuck with the bill? Well, if the “too big to fail” banks have their way it will be you and I. Right now, lobbyists for the big Wall Street banks are pushing really hard to include an extremely insidious provision in a bill that would keep the federal government funded past the upcoming December 11th deadline. This provision would allow these big banks to trade derivatives through subsidiaries that are federally insured by the FDIC. What this would mean is that the big banks would be able to continue their...
  • CCP “contagion” fears spark derivatives debate

    11/13/2014 9:41:06 PM PST · by TigerLikesRooster · 13 replies
    banking technology ^ | 13 November, 2014 | Elliott Holley
    CCP “contagion” fears spark derivatives debate 13 November, 2014 Written by Elliott Holley Controversy over the handling of derivatives dominated talk at the Mondo Visione Exchange Forum this week, where panellists contested the value of interoperability and whether CCP contagion might bring down the financial system. “Regulators should absolutely not allow interoperability for derivatives,” said Philip Simons, head of OTC derivatives business at Eurex Clearing. “It creates systemic risk. If one clearing house goes down, it would result in contagion as it would bring down all the others. CCPs are phenomenally under-capitalised. They could easily fall over.” Simons added that...
  • How Goldman's Libya case could disrupt derivatives

    10/21/2014 7:47:02 AM PDT · by Lorianne · 3 replies
    CNBC ^ | 21 October 2014 | Matt Clinch
    A costly legal battle between Goldman Sachs and the Libyan sovereign wealth fund could have more permanent repercussions for the global banking industry, experts have told CNBC. The Libyan Investment Authority has accused Goldman of misleading it and taking advantage of its lack of financial knowledge to make "substantial" profits on a series of derivative trades back in 2008. The bank denies the allegations and a full hearing has been touted to begin in early 2016 after a preliminary hearing was completed earlier in the month. The LIA claims the disputed derivative trades in early 2008 cost $1 billion, and...
  • Five U.S. Banks Each Have More Than 40 Trillion Dollars In Exposure To Derivatives

    09/28/2014 7:00:07 PM PDT · by SeekAndFind · 101 replies
    TEC ^ | 09/27/2014 | Michael Snyder
    When is the U.S. banking system going to crash? I can sum it up in three words. Watch the derivatives. It used to be only four, but now there are five "too big to fail" banks in the United States that each have more than 40 trillion dollars in exposure to derivatives. Today, the U.S. national debt is sitting at a grand total of about 17.7 trillion dollars, so when we are talking about 40 trillion dollars we are talking about an amount of money that is almost unimaginable. And unlike stocks and bonds, these derivatives do not represent "investments"...