BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Just call it U.S. Government AIG]]>http://www.bloggingstocks.com/2009/03/06/just-call-it-u-s-government-aig/http://www.bloggingstocks.com/2009/03/06/just-call-it-u-s-government-aig/http://www.bloggingstocks.com/2009/03/06/just-call-it-u-s-government-aig/#commentsFiled under: , , ,

In the film version of Tennessee Williams' 'Cat On A Hot Tin Roof' (1958), Maggie 'The Cat' (Elizabeth Taylor), knows her husband Brick (Paul Newman) is hiding something, but she can't figure out what it is.

Later, we learn that Brick is hiding the truth about his father, millionaire Big Daddy (Burl Ives), and he slowly gathers the courage to end the mendacity that has permeated their lives.

At some point the nation will, likewise, end the mendacity about American International Group (NYSE: AIG) and announce the full, probable cost of the orderly stabilization of AIG. For economic conservatives, market absolutists, most Republicans, and others who oppose government intervention, the above would be bad news, but at this juncture, it appears to be unavoidable.

Continue reading Just call it U.S. Government AIG

Just call it U.S. Government AIG originally appeared on BloggingStocks on Fri, 06 Mar 2009 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aigBernankecounterpartiescounterpartycredit crunchcredit default swapsderivativesfeaturedfinancial systemmortgage backed securitiesFri, 06 Mar 2009 13:30:00 EST<![CDATA[Investment banks said to be developing credit derivatives clearing house]]>http://www.bloggingstocks.com/2008/04/18/investment-banks-said-to-be-developing-credit-derivatives-cleari/http://www.bloggingstocks.com/2008/04/18/investment-banks-said-to-be-developing-credit-derivatives-cleari/http://www.bloggingstocks.com/2008/04/18/investment-banks-said-to-be-developing-credit-derivatives-cleari/#commentsFiled under: , ,

Deutsche Bank and other investment banks are apparently working on plans to develop a clearing house for the credit derivatives markets, in an effort to allay rising regulatory concern and investor skittishness about counterparty risk, The Financial Times reported Friday.

Deutsche Bank (NYSE: DB) and other banks are apparently trying to develop a plan that would allow only institutions with strong capital bases and credible trading histories to clear trades in the credit default swap markets with a central counterparty, The FT reported.

The derivatives market has experienced explosive growth in the past decade, with the instruments' value totaling $350-$450 trillion, depending on the methodology used. At the same time, the credit default swaps market has grown to $45-50 trillion.

Global clearing house

Economist David H. Wang told BloggingStocks Friday that, ideally, a global derivatives clearing house should take the form of a public, international organization administered by member nation states. Failing that, he'd like to see a private international organization administered by the major investment banks.

Continue reading Investment banks said to be developing credit derivatives clearing house

Investment banks said to be developing credit derivatives clearing house originally appeared on BloggingStocks on Fri, 18 Apr 2008 11:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bear Stearnsbond marketBSCcounterpartycredit crunchcredit default swapscredit marketsDBderivativesDeutsche Bankinthenewsriskrisk managementFri, 18 Apr 2008 11:27:00 EST<![CDATA[Global banking system asks: 'Who's next?']]>http://www.bloggingstocks.com/2008/03/17/global-banking-system-asks-whos-next/http://www.bloggingstocks.com/2008/03/17/global-banking-system-asks-whos-next/http://www.bloggingstocks.com/2008/03/17/global-banking-system-asks-whos-next/#commentsFiled under: ,

Reuters reports that the bargain sale of The Bear Stearns Companies (NYSE: BSC) is making global bankers question the solvency of their "counterparties" -- whichever bank, hedge fund, or other financial institution is on the other end of the phone line seeking to borrow money or conduct a trade.

Like the alphabet soup I've learned over the last year -- Structured Investment Vehicles (SIVs), Collateralized Debt Obligations (CDOs), etc. -- counterparties is a concept I think we'll be hearing more about in the coming weeks. The basic point here is that financial markets run on trust -- after all, the word credit is derived from the Latin word credere, to believe. And when trust evaporates, the financial markets freeze up.

Reuters quotes BNP Paribas strategist Edmund Shing who said, "There's turmoil in all markets after Bear Stearns. Everyone's asking: Who's next? Is there a Bear Stearns in Europe? Could investment banks start to fail?" And trading volume is way down as a result: major players on the interbank market had been doing as little as 700 million pounds a day of business over the past week, a fraction of the several billions that would have been executed a year ago, and far less on Monday.

Continue reading Global banking system asks: 'Who's next?'

Global banking system asks: 'Who's next?' originally appeared on BloggingStocks on Mon, 17 Mar 2008 11:18:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bear stearnsBearStearnsbsccounterpartyinthenewsMon, 17 Mar 2008 11:18:00 EST