Category Archives: CDSs

Talking Business – Bet Dreamed Up by Wall Street Made Crisis Worse – NYTimes.com

Every time you pick up another rock along the winding path that led to the financial crisis, something else crawls out. Subprime mortgages were sold as a way to give low-income people a chance at homeownership and the American Dream. … Continue reading

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Mauldin on Credit Default Swaps

Download 2010-4-09 John Mauldin e-letter Credit Default Swaps Threaten the System We will get into banks being too big to fail in a minute, but the first problem to be dealt with is credit default swaps. What happened in the … Continue reading

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CDS Reform in the Headlines

Download 2010-3-11 Wall Street Moves to Shape Look of CDS Rules – WSJ.com Investors expressed frustration and anger Wednesday after reports that U.S. and European governments were eager to place new curbs on the use of credit-default swaps. But some … Continue reading

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NYT Opinion Slams CDSs — Do You Agree?

NYT: It’s Time for Swaps to Lose Their Swagger DERIVATIVES are responsible for much of the interconnectedness between banks and other institutions that made the financial collapse accelerate in the way that it did, costing taxpayers hundreds of billions in … Continue reading

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Intriguing Details on the Goldman/AIG CDS Issue

NYT: Testy Conflict With Goldman Helped Push A.I.G. to Edge Goldman looks like a predator or a smart risk manager, depending on your view.

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Inside Story from a Master Storyteller on AIG

Vanity Fair, Michael Lewis: The Man Who Crashed the World Michael Lewis is author of Liar's Poker and Moneyball (both must reads).  Fascinating portrait of AIG

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Hank Greenberg (former CEO of AIG) and His Views on Goldman, Govt

Download 2010-1-9 Weekend Interview with Hank Greenberg: Can AIG Be Saved How did it all come apart so quickly? Here are the pieces Mr. Greenberg says he sees falling into place. In 2005, a trade group called the International Swaps … Continue reading

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The Dark Side of Credit Default Swaps

Download 2010-1-5 The Game: YRC Trucking Firm's Near-Death – WSJ.com There are plenty of legitimate uses for CDS, but with little transparency or oversight, traders can exploit a kink in the system, holding insurance on a company that is more … Continue reading

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Well, At Least Half the Derivatives Market Will Be Transparent

Download 2009-12-26 Derivatives Overhaul Has Failed – WSJ.com Dealers persuaded lawmakers to make exemptions to the clearing rules for some customers, including those covering foreign-exchange contracts, hedging by "end users" such as energy firms and airlines, and activities to offset … Continue reading

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Goldman Gets More Grief, Part II

NYT: Banks Bundled Bad Debt, Bet Against It and Won One focus of the inquiry is whether the firms creating the securities purposely helped to select especially risky mortgage-linked assets that would be most likely to crater, setting their clients … Continue reading

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