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Keyword: derivatives

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  • 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"...
  • China Scrambling After "Discovering" Thousands Of Tons Of Rehypothecated Copper, Aluminum Missing

    06/24/2014 8:22:06 AM PDT · by Renfield · 19 replies
    Zero Hedge ^ | 6-4-2014 | Tyler Durden
    "Banks are worried about their exposure," warns one warehousing source, "there is a scramble for people to head down there at the minute and make sure that their metal that they think is covered by a warehouse receipt actually exists." The rehypothecated catastrophe that we discussed in great detail here (copper financing), here (all commodities), and here (global contagion) appears to be gathering speed as the China's northeastern port of Qingdao has halted shipments of aluminum and copper due to an investigation by authorities after they found "there is a discrepancy in metal that should be there and metal that...
  • Bitcoin swap agreement could lead to regulated derivatives

    03/24/2014 1:02:40 PM PDT · by Errant · 16 replies
    Market Watch [WSJ] ^ | 24 March 2014
    The Tera Group Inc. said Monday it had finalized the terms for a multi-million dollar bitcoin swap agreement between two U.S. institutions, but declined to name the parties involved. Such transactions are currently unregulated, Tera said. The company said it has reached out to the U.S. Commodities Futures Trading Commission in order to work on a regulated bitcoin swap. The CFTC hadn’t responded to a request for comment as of writing this post. “The goal is for us to bring this to the bitcoin community because there are many commercial entities that want to take bitcoin in but have concerns...
  • Did Derivatives Cause Bond Fund Giant, PIMCO's $2 Trillion Divorce?

    02/28/2014 8:11:51 AM PST · by SeekAndFind
    American Thinker ^ | 02/28/2014 | Chriss Street
    The Wall Street Journal on February 25th published a story about December’s messy corporate divorce between Bill Gross and Mohamed El-Erianas, co-Chief Investment Officers at Pacific Investment Management Company (PIMCO), the world’s largest bond fund with almost $2 trillion in assets.  The article focused on the prickly personality of Gross and foul language complaints by El-Erian during a period of stress last summer when the firm was suffering market losses and clients were withdrawing billions.  But despite a carefully crafted image of a traditional conservative bond manager for “serious” money, PIMCO has magnified returns by making trillions of dollars in high-risk...
  • Washington & Wall Street: Too Big to Fail and the Detroit Bankruptcy

    12/30/2013 2:49:03 PM PST · by george76 · 9 replies
    Breitbart ^ | 27 Dec 2013 | Christopher Whalen
    the bogey man known as “systemic risk” to gain advantage over the other creditors . ... In order for the OTC casino to work, the derivatives contracts had to be given special priority in bankruptcy. Speculative derivative instruments such as credit default swaps (CDS), which caused the failure and government bailout of American International Group, could never exist in significant size were in not for the safe harbor from bankruptcy for derivatives created by Congress in the 1980s and 1990s. Members of Congress from both parties were paid very well for their treachery. ... The intellectual author of the “systemic...
  • What Do They Say Is Coming In 2014? Top Financial Prognosticators Speak Out

    12/13/2013 7:19:47 PM PST · by Tolerance Sucks Rocks · 21 replies
    Freedom Outpost ^ | December 13, 2013 | Michael Snyder
    Some of the most respected prognosticators in the financial world are warning that what is coming in 2014 and beyond is going to shake America to the core. Many of the quotes that you are about to read are from individuals that actually predicted the subprime mortgage meltdown and the financial crisis of 2008 ahead of time. So they have a track record of being right. Does that guarantee that they will be right about what is coming in 2014? Of course not. In fact, as you will see below, not all of them agree about exactly what is coming...
  • Derivatives dispute harming EU-US free trade talks

    10/30/2013 7:48:37 PM PDT · by Olog-hai · 1 replies
    Reuters ^ | Tue Oct 29, 2013 4:10pm IST | Luke Baker and Stephen Adler
    Ambitious plans for an EU-U.S. free-trade agreement may be put in jeopardy by Washington’s failure to finalize a deal coordinating rules in the $630 trillion derivatives market, the EU’s financial markets chief has warned. The U.S. Commodity Futures Trading Commission agreed in July this year on a common position with the European Commission and other global regulators that aimed to iron out differences in how they police derivatives trading worldwide. But in the months since that agreement was struck in principle, the parties have failed to sign off on the details of the arrangement. The CFTC, under pressure to adhere...
  • Banks rigged €10 trillion derivatives market, Brussels says ($13 trillion)

    07/02/2013 8:55:25 PM PDT · by Olog-hai · 3 replies
    EU Observer ^ | 02.07.13 @ 09:30 (July 2) | Benjamin Fox
    Thirteen big banks colluded to shut out competition from the multi-trillion euro derivatives market, according to an investigation by the European Commission. The EU’s executive arm said that its investigation, which began in 2011, had uncovered anti-competitive practices during the 2008-9 financial crisis. The commission investigation focuses on the credit default swap (CDS) market which allows banks and businesses to hedge against possible losses. However, more controversially, they were used by Goldman Sachs and others to speculate on the probability of a Greek debt crisis in 2010. There are almost 2 million active CDS contracts with a joint notional amount...
  • The 441 TRILLION Dollar Interest Rate Derivatives Time Bomb

    06/24/2013 8:09:18 PM PDT · by blam · 33 replies
    TEC ^ | 6-24-2013 | Michael Snyder
    The 441 TRILLION Dollar Interest Rate Derivatives Time Bomb By Michael Snyder June 24th, 2013The Derivatives Time BombDo you want to know the primary reason why rapidly rising interest rates could take down the entire global financial system? Most people might think that it would be because the U.S. government would have to pay much more interest on the national debt. And yes, if the average rate of interest on U.S. government debt rose to just 6 percent (and it has actually been much higher in the past), the federal government would be paying out about a trillion dollars a...
  • Worldwide derivatives market could be over $1.2 quadrillion in notional value

    03/26/2013 9:50:57 PM PDT · by Lorianne · 28 replies
    25 March 2013 | Gaius Publius
    We wrote earlier about the recent move by bankers — and the politicians who serve them — to unreform the derivatives market, to return it to its pre–Dodd-Frank, pre–Crash-of-2007 state. This is a serious move by banks and bank lobbyists, and it could well happen soon. The seven bills in the House package of “tweaks” — as the House Agriculture website dishonestly puts it — have cleared the committee with Democratic support and are headed to the House floor. In the meantime, there are companion bills in the Senate. What will happen in the Senate? Well, Dick Durbin (always an...
  • Nigel Farage: My God, The TRUTH!

    03/20/2013 9:47:09 AM PDT · by Kartographer · 8 replies
    Market-Ticker ^ | 3/20/13 | Karl Denninger
    We are to blame for this because we failed to demand and enforce a stop to this crap of un-margined derivative exposure that is "off book" and unsupervised on a daily basis, unlike positions in the futures and stock markets. I have been calling for "pulling the fuse" on this bomb since I started The Ticker for this very reason. The banks have hundreds of trillions of "gross" exposure in these instruments and while that grossly overstates the actual risk the fact of the matter is that these institutions have not and cannot post margin against these positions as they...
  • DoJ lawsuit against S&P even sillier than first thought (Banks got duped on their own offerings?)

    02/08/2013 7:56:06 AM PST · by SeekAndFind · 7 replies
    Hotair ^ | 02/08/2013 | Ed Morrissey
    I wrote Tuesday about the hypocrisy and perhaps vindictiveness of the Department of Justice’s lawsuit against ratings agency Standard & Poor’s for rating toxic mortgage-backed securities and their derivatives highly before the housing bubble popped. Apparently I wasn’t tough enough on … the DoJ. Bloomberg’s Jonathan Weil explains why the lawsuit isn’t just ill-considered, but downright silly: Oh, the poor suckers at Citigroup Inc. and Bank of America Corp., fooled about the stench of their own garbage by those sneaky credit raters at Standard & Poor’s.The U.S. Justice Department made some peculiar allegations in its lawsuit this week against S&P...
  • The Obama Hypocrisy: US sues S&P over pre-crisis mortgage ratings

    02/08/2013 6:33:10 AM PST · by Madhattan · 1 replies
    In charges filed late Monday in Los Angeles federal court, the Justice Department said S&P gave high marks to mortgage-backed securities that later went sour, even though it knew they were risky. The government said S&P misrepresented the risks because it wanted more business from the banks. The case is the government's first major action against one of the credit rating agencies that stamped their seals of approval on Wall Street's mortgage bundles. It marks a milestone for the Justice Department, which has been criticized for failing to make bigger cases against the companies involved in the crisis. "Put simply,...
  • No Big Deal: Italian Bank Hid Derivative Losses

    01/26/2013 8:54:11 AM PST · by Kaslin · 2 replies
    Townhall.com ^ | January 26, 2013 | Mike Shedlock
    When Mario Draghi (now ECB President), had oversight of the Italian bank system as Bank of Italy Governor, the Italian bank Monte dei Paschi di Siena (Italy's third largest bank) hid information on the derivatives transactions between 2006 and 2009. This information is just now out, and shares of the bank have plunged 22% in a few days. Mario Draghi ought to be under fire, but he says it's a "Matter for the Italian Authorities". The Mish translation is "It's a Matter for the Italian Authorities, to Sweep Under the Rug". With that backdrop, let's take a look at the...
  • Goldman Sachs And The Big Hedge Funds Are Pushing Leverage To Ridiculous Extremes

    01/20/2013 5:43:44 AM PST · by SeekAndFind · 15 replies
    TEC ^ | 01/14/2013 | Michael Snyder
    Goldman Sachs And The Big Hedge Funds Are Pushing Leverage To Ridiculous Extremes By Michael, on January 14th, 2013 As stocks have risen in recent years, the big hedge funds and the "too big to fail" banks have used borrowed money to make absolutely enormous profits. But when you use debt to potentially multiply your profits, you also create the possibility that your losses will be multiplied if the markets turn against you. When the next stock market crash happens, and the gigantic pyramid of risk, debt and leverage on Wall Street comes tumbling down, will highly leveraged banks...
  • 1000x Systemic Leverage: $600 Trillion In Gross Derivatives "Backed" By $600 Billion In Collateral

    12/25/2012 7:55:15 PM PST · by SeekAndFind · 26 replies
    Zero Hedge ^ | 12/24/2012 | Tyler Durden
    There is much debate whether when it comes to the total notional size of outstanding derivatives, it is the gross notional that matters (roughly $600 trillion), or the amount which takes out biletaral netting and other offsetting positions (much lower). We explained previously how gross is irrelevant... until it is, i.e. until there is a breach in the counterparty chain and suddenly all net becomes gross (as in the case of the Lehman bankruptcy), such as during a financial crisis, i.e., the only time when gross derivative exposure becomes material (er, by definition). But a bigger question is what...
  • Behind an Estimated $30 Trillion Drain on Banks, a Lot of Hypotheticals

    11/08/2012 11:32:14 AM PST · by ExxonPatrolUs · 8 replies
    NY Times ^ | 10-29-2012 | PETER EAVIS
    Imagine a situation in which the world’s banks have to find as much as $30 trillion to comply with just one new regulation. That might be something of a stretch, given that the gross domestic product of the United States is only $15.8 trillion, and the world’s 10 largest banks hold only $25 trillion of assets. Yet a banking industry group recently looked into a new rule and sketched out a possibility in which banks were forced to come up with as much as $30 trillion in cash. The potential cash call is outlined in a letter the International Swaps...
  • RED ALERT: It's Open Season on All Customer Funds

    08/10/2012 11:13:07 PM PDT · by STARWISE · 78 replies
    Barnhardt.bix ^ | 8-10-12 | Ann Barnhardt
    The NFA is collusion with the Banksters, government and judiciary have achieved their goal. The entire concept of "customer segregated funds" is officially, completely, legally dead. Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone. Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group"...
  • When The Derivatives Market Crashes (And It Will) U.S. Taxpayers Will Be On The Hook

    06/01/2012 9:28:47 AM PDT · by Lorianne · 7 replies
    Hawaii News Daily ^ | 29 May 2012 | Michael Snyder
    Recently, JP Morgan made national headlines when it announced that it was going to take a 2 billion dollar loss from derivatives trades gone bad. Well, it turns out that JP Morgan did not tell us the whole truth. As you will see later in this article, most analysts are estimating that the losses will eventually be far larger than 2 billion dollars. But no matter how bad things get for JP Morgan, it will not be allowed to fail. JP Morgan is the largest bank in the United States, so it is essentially the "granddaddy" of the too big...
  • US reportedly plans to arm Italy’s drones

    05/29/2012 9:54:24 AM PDT · by opentalk · 4 replies
    Wall Street Journal ^ | May 29, 2012 | WSJ
    The Obama administration plans to arm Italy’s fleet of Reaper drone aircraft, a move that could open the door for sales of advanced hunter-killer drone technology to other allies, according to lawmakers and others familiar with the matter. The sale would make Italy the first foreign country besides Britain to fly U.S. drones armed with missiles and laser-guided bombs. U.S. officials said Italy intends initially to deploy the armed drones in Afghanistan. Lawmakers who question the planned deal say the decision to “weaponize” Italy’s unarmed surveillance drones could make it harder for the U.S. to deny similar capabilities to other...
  • Killers of banks and jobs (JP Morgan is much ado about nothing. Look at public sector mismanagement)

    05/15/2012 6:16:59 AM PDT · by SeekAndFind · 4 replies
    Washington Times ^ | 05/15/2012 | Richard Rahn
    Last week, Jamie Dimon, CEO of the nation’s largest bank, JPMorgan Chase, revealed that the bank had made a $2 billion-plus trading mistake. The bank has more than $2 trillion in assets and made a profit of about $20 billion last year. So it lost one-tenth of 1 percent of its assets and an amount equal to about 10 percent of its income for last year. No big deal, despite all the hand-wringing of the political and media class. Predictably, Sen. Carl Levin, Michigan Democrat and arguably the most irresponsible member of Congress, immediately issued a press release calling for...
  • Massive derivatives loss at JPMorgan fuels calls to tighten Wall Street regulation

    05/12/2012 5:39:26 PM PDT · by Olog-hai · 23 replies
    Newark Star-Ledger ^ | Saturday, May 12, 2012, 8:05 PM | Ed Beeson
    The only Wall Street titan to emerge from the financial crisis without a black eye headed into the weekend with a concussion. JPMorgan Chase, fresh off the surprise news that it lost more than $2 billion in recent weeks to a complex trade in credit derivatives, saw its stock value plummet Friday more than 9 percent. The massive loss also reportedly led regulators to open up inquiries about the trading strategy and caused a downgrade of its credit by the rating agency Fitch, which in turn sent its stock lower in after-hours trading. To top it off, the reported loss...
  • The $2 Billion Loss By JP Morgan Is Just A Preview Of The Coming Collapse Of The Derivatives Market

    05/12/2012 10:44:24 AM PDT · by SeekAndFind · 41 replies
    The Economic Collapse Blog ^ | 05/12/2012 | Michael Snyder
    When news broke of a 2 billion dollar trading loss by JP Morgan, much of the financial world was absolutely stunned. But the truth is that this is just the beginning. This is just a very small preview of what is going to happen when we see the collapse of the worldwide derivatives market. When most Americans think of Wall Street, they think of a bunch of stuffy bankers trading stocks and bonds. But over the past couple of decades it has evolved into much more than that. Today, Wall Street is the biggest casino in the entire world....
  • Bank Downgrade Forward Calendar

    04/05/2012 12:46:15 PM PDT · by SatinDoll
    The Zero Hedge ^ | 04/05/2012 | Tyler Durdan
    A major potential negative catalyst for financials globally is rapidly approaching as 114 banks are on review-for-downgrade by Moody's across 16 countries. Why do we care so much about ratings given their historical credibility?...In Europe, the fun heats up in the next few weeks as first Italian banks (4/16), then Spanish banks (4/23) and then Austrian (4/30) face from 1 to 4 notch downgrades and the potential to lose their short-term (funding-/CP-related) Prime-1 top rating, implicitly raising funding costs (and liquidity concerns) even further.
  • TBTF Get TBTFer: Top 5 Banks Hold 95.7%, Or $221 Trillion, Of Outstanding Derivatives

    03/26/2012 1:22:10 PM PDT · by SatinDoll · 8 replies · 10+ views
    The Zero Hedge ^ | 03/26/2012 | Tyler Durden
    Every quarter the Office of the Currency Comptroller releases its report on Bank Derivative Activities, and every quarter we find that the Too Big To Fail get Too Bigger To Fail. To wit: in Q4 2011, of the total $230.8 trillion in US outstanding derivatives, the Top 5 banks (JPM, BofA, Morgan Stanley, Goldman and HSBC) accounted for 95.7% of all Derivatives. In some respects this is good news: in Q2, the Top 5 banks held 95.9% of the $250 trillion in derivatives. Unfortunately it is also bad news, because $220 trillion is more than enough for the world to...
  • How To Bring The Cancerous Derivatives Market Under Control

    01/25/2012 9:35:12 AM PST · by SpaceBar · 57 replies · 1+ views
    The American Almanac ^ | September 6, 1993 | by Christopher White
    On March 9, Lyndon LaRouche intervened in the economic crisis to propose a plan that is as simple and direct, as it is potentially effective in its execution: a sales or transaction tax on the turnover of ``financial derivative'' securities or financial instruments. Each time such a security or instrument is traded, he said, it should be taxed at 0.1 percent of its face value, or, as it is called in the derivatives trade, its notional principal amount. ... Talk to most people about ``derivatives'' and you pretty soon discover that they have no idea what they are. Still less...
  • Hendry's 'China Short' Fund Makes Big Returns

    12/12/2011 6:52:12 PM PST · by TigerLikesRooster · 6 replies
    CNBC ^ | 12/12/11 | Sam Jones
    Hendry's 'China Short' Fund Makes Big Returns Published: Monday, 12 Dec 2011 | 9:08 PM ET By: Sam Jones, Hedge Fund Correspondent Shorting the credit of companies positioned to do badly from a Chinese slowdown has proved to be one of the hedge fund industry’s most successful trades of 2011. Hugh Hendry, the outspoken U.K. hedge fund manager known for his bearish, often contrarian views on the global economy, has seen his ‘China short’ fund rack up gains of more than 52 percent so far this year, investors have told the Financial Times. The gains compare to a loss for...
  • Black Swan

    12/10/2011 2:43:44 PM PST · by nathanbedford · 34 replies · 1+ views
    Vanity (long) ^ | December 10, 2011 | Nathan Bedford
    Seven decades after Pearl Harbor and one decade after 9/11 we Americans dare not remain willfully oblivious to the threat of the Black Swan. Our grand American experiment is more vulnerable now that it was in 1941 and it is certainly more precariously balanced than it was in 2011. These conundrums are what Donald Rumsfeld might describe as the "known unknowns" but by definition a Black Swan event is as surprising as it is earth shattering. So all of these threats which beset us are by definition not Black Swan events. They are known risks. There are many more risks...
  • $707,568,901,000,000: How (And Why) Banks Increased Total Outstanding Derivatives

    While everyone was focused on the impending European collapse, the latest soon to be refuted rumors of a quick fix from the Welt am Sonntag notwithstanding, the Bank of International Settlements reported a number that quietly slipped through the cracks of the broader media. Which is paradoxical because it is the biggest ever reported in the financial world: the number in question is $707,568,901,000,000 and represents the latest total amount of all notional Over The Counter (read unregulated) outstanding derivatives reported by the world's financial institutions to the BIS for its semi-annual OTC derivatives report titled "OTC derivatives market activity...
  • eCat Has European Certification

    10/24/2011 7:35:54 PM PDT · by Kevmo · 27 replies
    ECat News ^ | October 24, 2011 | admin
    eCat Has European Certification October 24, 2011 | Author: admin Many of us have been wondering about Defkalion’s stated progress (or otherwise) regarding official certification of their eCat derivatives. Since their divorce, it is interesting to note that Andrea Rossi states that he has completed CE compliance: Andrea Rossi October 23rd, 2011 at 8:08 AM Dear Dario: The CE for the business to business has been done. For household applications not yet. Warm Regards, A.R . The following snips are from the wiki entry: CE marking (originally EC mark[1]) is a mandatory conformity mark for products placed on the...
  • Bank Of America Dumps $75 Trillion In Derivatives On U.S. Taxpayers With Federal Approval

    Bloomberg reports that Bank of America (BAC) has shifted about $22 trillion worth of derivative obligations from Merrill Lynch and the BAC holding company to the FDIC insured retail deposit division. Along with this information came the revelation that the FDIC insured unit was already stuffed with $53 trillion worth of these potentially toxic obligations, making a total of $75 trillion.
  • Coming Derivatives Crisis That Could Destroy The Entire Global Financial System (Bank of America)

    10/22/2011 4:55:46 PM PDT · by dennisw · 57 replies
    Most people have no idea that Wall Street has become a gigantic financial casino.  The big Wall Street banks are making tens of billions of dollars a year in the derivatives market, and nobody in the financial community wants the party to end.  The word "derivatives" sounds complicated and technical, but understanding them is really not that hard.  A derivative is essentially a fancy way of saying that a bet has been made.  Originally, these bets were designed to hedge risk, but today the derivatives market has mushroomed into a mountain of speculation unlike anything the world has ever...
  • Sleight of hand: BofA moves dodgy Merrill derivatives to bank (U.S. taxpayer on the hook for $55+T?)

    10/22/2011 9:43:11 AM PDT · by rabscuttle385 · 63 replies
    The New York Post ^ | 2011-10-21 | Mark Decambre
    A plan by beleaguered Bank of America to foist trillions of dollars of funky Merrill Lynch derivatives onto its depositors is raising eyebrows on Wall Street. The rarely used move will likely save the bank millions of dollars in collateral but could put depositors’ cash behind the eight ball. The move also brought to light fissures between the nation’s top banking regulators, the Federal Deposit Insurance Corp. and the Federal Reserve, in the wake of new regulations meant to curb the free-wheeling habits that fostered the worst crisis in a generation back in 2008. At issue is BofA’s decision to...
  • Federal Judge Grabs Bank Of America's $8.5 Billion Settlement

    10/21/2011 9:08:18 PM PDT · by Razzz42 · 9 replies
    Forbes ^ | 10/19/2011 @ 9:48PM | Nathan Vardi, Forbes Staff
    A federal judge ruled on Wednesday that the approval process for Bank of America’s $8.5 billion mortgage put-back settlement should be moved to federal court, making it more vulnerable to attack from investors and public officials. William Pauley, a federal judge in Manhattan, said the case must be heard in federal court because it “implicates core federal interests in the integrity of nationally chartered banks and the vitality of the national securities markets.” Bank of America in late June struck the $8.5 billion deal with 22 big institutions like BlackRock that had invested in Countrywide’s mortgage-backed securities and claimed that...
  • Derivatives The 600 Trillion Time Bomb That's Set To Explode

    10/12/2011 2:37:06 PM PDT · by Stayfree · 13 replies
    MondayMorning.com ^ | Oct. 12, 2011 | Keith Fitz-Gerald
    In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller... The world's gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist.
  • Club for Growth flirts with Herman Cain

    10/05/2011 2:05:48 PM PDT · by Kartographer · 15 replies
    Politico ^ | 10/5/11 | ALEXANDER BURNS
    The still-neutral Club for Growth weighs in on Herman Cain's polling surge, in a statement suggesting that Cain has a chance of winning over the powerful advocacy group: “Herman Cain is surging in the polls because his clear message of limited government and economic freedom is resonating,” said Club for Growth President Chris Chocola. “Cain has articulated a strong vision for putting America back on the path to prosperity. A clear message promoting economic growth, like the one Herman Cain is presenting, is essential to defeating Obama. Republican primary voters ought to give Herman Cain a close look. We are.”...
  • Five Banks Account For 96% Of The $250 Trillion In Outstanding US Derivative Exposure

    09/24/2011 7:11:09 PM PDT · by SeekAndFind · 34 replies · 1+ views
    Zero Hedge ^ | 09/24/2011 | Tyler Durden
    The latest quarterly report from the Office Of the Currency Comptroller is out and as usual it presents in a crisp, clear and very much glaring format the fact that the top 4 banks in the US now account for a massively disproportionate amount of the derivative risk in the financial system. Specifically, of the $250 trillion in gross notional amount of derivative contracts outstanding (consisting of Interest Rate, FX, Equity Contracts, Commodity and CDS) among the Top 25 commercial banks (a number that swells to $333 trillion when looking at the Top 25 Bank Holding Companies), a mere...
  • The Real "Margin" Threat: $600 Trillion In OTC Derivatives, A Multi-Trillion Variation Margin Call

    06/06/2011 6:06:00 AM PDT · by OpusatFR · 14 replies
    Zero Hedge ^ | 06/05/11 | Tyler Durden
    While the dominant topic of conversation when discussing margin hikes (or reductions) usually reverts to silver, ES (stocks) and TEN (bonds), what everyone so far is ignoring is the far more critical topic of real margin risk, in the form of roughly $600 trillion in OTC derivatives. The issue is that while the silver market (for example) is tiny by comparison, it is easy to be pushed around, and thus exchanges can easily represent the illusion that they are in control of counterparty risk (after all, that was the whole point of the recent CME essay on why they hiked...
  • Understanding Derivatives

    05/29/2011 4:29:09 PM PDT · by bigbob · 17 replies
    Email | 5/26/11 | Unknown
    Heidi is the proprietor of a bar in Buffalo. She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later. Heidi keeps track of the drinks consumed on a ledger (thereby granting the customers' loans). Word gets around about Heidi's "drink now, pay later" marketing strategy and, as a result, increasing numbers of customers flood into Heidi's bar. Soon she has the largest sales volume for any...
  • Buffett's 2010 Letter To Shareholders

    02/26/2011 9:31:11 AM PST · by FromLori · 6 replies
    ZeroHedge ^ | 2/26/2011 | Tyler Durden
    For those who care what the man whose corporate existence is intimately tied to the government's bailout of the financial system, has to say, below we present Buffett's 2010 letter to shareholders. The only section that is relevant to us, and which continues to demonstrate why Berkshire is a walking moral hazard (contrary to his conedmnation of financial weapons of mass destruction), is the disclosure on derivatives.
  • The Muslim Brotherhood's Long-Standing War On The West (US Politicians)

    02/02/2011 10:18:40 PM PST · by bronxville · 148 replies
    US Politicians Duped By The Brotherhood In the United States, one individual maintained a pretense of "moderation" which would later embarrass the left and the right. According to the testimony of Dr. Michael Waller to the US Senate Committee on the Judiciary, Abdurahman Alamoudi was a member of the Muslim Brotherhood. A man born in Eritrea in 1951, he arrived in the US in 1979 and became a naturalized US citizen on May 23, 1996. From 1985 onwards he became involved in many Muslim groups. In 1990 he founded the Washington DC-based American Muslim Council (AMC), which Waller states "has...
  • The REAL Reason Ben Bernanke Leaves a Paperweight on the “Print” Button When His Finger Gets Tired

    02/07/2011 1:08:03 PM PST · by FromLori · 25 replies
    ZeroHedge ^ | 2/6/2011 | Phoenix Capital Research
    We’ve been over the numerous BS excuses that US Dollar destroyer extraordinaire Ben Bernanke has made for QE enough times that today I’d rather simply focus on the REAL reason he continues to funnel TRILLIONS of Dollars into the Wall Street Banks. I’ve written this analysis before. But given the enormity of what it entails, it’s worth repeating. The following paragraphs are the REAL reason Bernanke does what he does no matter what any other media outlet, book, investment expert, or guru tell you. Bernanke is printing money and funneling it into the Wall Street banks for one reason and...
  • Derivatives: The Big Banks' Quadrillion-Dollar Financial Casino

    12/15/2010 11:58:59 AM PST · by SeekAndFind · 11 replies
    Seeking Alpha ^ | 12/15/2010 | Michael Snyder
    If you took an opinion poll and asked Americans what they considered the biggest threat to the world economy to be, how many of them do you think would give "derivatives" as an answer? But the truth is that derivatives were at the heart of the financial crisis of 2007 and 2008, and whenever the next financial crisis happens, derivatives will undoubtedly play a huge role once again.So exactly what are "derivatives"? Well, derivatives are basically financial instruments whose value depends upon or is derived from the price of something else. A derivative has no underlying value of its...
  • A Secretive Banking Elite Rules Trading in Derivatives

    12/12/2010 12:01:52 AM PST · by JustTheTruth · 10 replies
    New York Crimes ^ | December 11, 2010 | Louise Story
    On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan. The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.
  • In the News

    12/06/2010 8:46:50 PM PST · by Razzz42 · 4 replies
    Jim Sinclair's Mineset ^ | December 6, 2010 at 10:43 pm | Jim Sinclair
    My Dear Friends, Gold is clearly on its way to $1,650 and beyond. I have told you for many years that there was no PRACTICAL solution to the problems created by OTC derivative manufacturers and distributors namely our beloved “banksters.” By practical I meant a solution that itself would not cause more dislocations than the problem to which it was applied already has. Now you see political realities both in taxation and quantitative easing. Friends, there is no practical way out of this problem – none. We are going to inflate and spend as the entire Western world financial/political managers...
  • Does Bernanke REALLY Think QE Will Boost Home Prices

    11/10/2010 9:24:58 AM PST · by ASOC · 12 replies
    Zero Hedge ^ | 11/09/2010 | Phoenix Capital Research
    (snip) According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION. Five banks account for 95% of this. Can you guess which five? (snip)
  • Millions of home owners sending monthly payments to wrong bank

    10/20/2010 3:37:02 PM PDT · by GilGil · 57 replies
    Examiner.com ^ | 10/20/10 | Gil Guignat
    Just because you have been making your mortgage payments on time and have great credit does not mean that you are not in default. Tens of millions of mortgage holders are making their mortgage payments to banks that cannot prove they own the mortgages to their homes. This is now a fact. Think about this for a minute. The odds are that the monthly payment you are making to your bank is being cashed by a bank that cannot prove ownership of your mortgage. This means that you are making payments to a bank that does not have the authority...
  • Far More Derivative Exposure Today Than Two Years Ago

    10/08/2010 6:51:26 AM PDT · by WebFocus
    RealClearMarkets ^ | 10//8/2010 | Interview with Maria Bartiromo
    Harold Bradley, chief investment officer for the Kauffman Foundation, discusses the increase in derivatives held by commercial banks with CNBC's Maria Bartiromo and Herb Greenberg. Maria Bartiromo: Why do you think we should care much about derivatives that the banks are holding? Harold Bradley: Well, you know, I'm just sitting out here in the Midwest looking at government statistics, and the Bank for International Settlements is showing a chart that, to me, just seems so counterintuitive. When you look back at the last time they peaked in late '08 and early '09, when Ned Davis was issuing his first warnings,...