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[Room to Negotiate on Derivatives, Democrats Say]]>http://www.bloggingstocks.com/2010/05/17/room-to-negotiate-on-derivatives-democrate-say/http://www.bloggingstocks.com/2010/05/17/room-to-negotiate-on-derivatives-democrate-say/http://www.bloggingstocks.com/2010/05/17/room-to-negotiate-on-derivatives-democrate-say/#commentsFiled under: ,

Chris Dodd, chairman of the Senate banking committee, and Blanche Lincoln, chairman of the agriculture committee, told the Financial Times that there was room to negotiate on a proposal that would force banks to spin off their swaps desks.

If passed, the proposal would mean that banks would most likely close down their gambling operations and stick to good, old-fashioned banking. As you might guess, banks are jumping up and down in opposition to this move.

Continue reading Room to Negotiate on Derivatives, Democrats Say

Room to Negotiate on Derivatives, Democrats Say originally appeared on BloggingStocks on Mon, 17 May 2010 12:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>banksinthenewsswapsMon, 17 May 2010 12:30:00 EST<![CDATA[High stakes poker! The government vs. the bankers on derivatives regulation]]>http://www.bloggingstocks.com/2009/09/01/high-stakes-poker-the-government-vs-the-bankers-on-derivatives/http://www.bloggingstocks.com/2009/09/01/high-stakes-poker-the-government-vs-the-bankers-on-derivatives/http://www.bloggingstocks.com/2009/09/01/high-stakes-poker-the-government-vs-the-bankers-on-derivatives/#commentsFiled under: , , ,

If you think the health care debate is a big brouhaha, its nothing compared to the behind the scenes battle over government regulation of derivatives.

On the government side we have a proposal that would require the most standard derivatives to be processed through a clearinghouse, whose members would make good on any default. This is the way the commodity markets operate. For "nonstandardized contracts," banks would have to put up more capital or margin.

Continue reading High stakes poker! The government vs. the bankers on derivatives regulation

High stakes poker! The government vs. the bankers on derivatives regulation originally appeared on BloggingStocks on Tue, 01 Sep 2009 16:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>a 592 trillion marketbank opposition to derivatives regulationderivativeshow they workswapsTue, 01 Sep 2009 16:20:00 EST<![CDATA[Doomsday Scenario: Could U.S. default on its national debt?]]>http://www.bloggingstocks.com/2009/02/26/doomsday-scenario-could-u-s-default-on-its-national-debt/http://www.bloggingstocks.com/2009/02/26/doomsday-scenario-could-u-s-default-on-its-national-debt/http://www.bloggingstocks.com/2009/02/26/doomsday-scenario-could-u-s-default-on-its-national-debt/#commentsFiled under: , , , , , ,

Apparently the markets think that U.S. risk of sovereign default is steadily creeping up. Hedge fund blogger Zero Hedge puts up the numbers here. According to the numbers from finance calculator company Markit, U.S. is a greater default risk than Japan or Germany, among others.

A default would destroy the U.S. economy and TARP recipients, in particular. The Piqqem Sentiment on major TARP holders is more or less neutral, although the bankruptcy of the U.S. Treasury might change that, no?

Continue reading Doomsday Scenario: Could U.S. default on its national debt?

Doomsday Scenario: Could U.S. default on its national debt? originally appeared on BloggingStocks on Thu, 26 Feb 2009 16:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptcyCDSdefaultsovereign debtswapsU.S. deficitThu, 26 Feb 2009 16:50:00 EST<![CDATA[Fed, ECB, BOE, BOJ again add funds to financial system]]>http://www.bloggingstocks.com/2008/09/29/fed-ecb-boe-boj-again-add-funds-to-financial-system/http://www.bloggingstocks.com/2008/09/29/fed-ecb-boe-boj-again-add-funds-to-financial-system/http://www.bloggingstocks.com/2008/09/29/fed-ecb-boe-boj-again-add-funds-to-financial-system/#commentsFiled under: , , , ,

The U.S Federal Reserve and its companion, major central banks around the world again Monday took actions to keep financial markets liquid amid a credit crunch that has made private banks reluctant to lend critical, short-term funds to each other, and that threatens to slow global growth to a crawl.

The Fed said it increased the size of its dollar swap arrangements to $620 billion from the previously-announced $290 billion. The Fed also increased the size of its liquidity auctions and announced two forward auctions to provide funding over the year-end period.

"These steps are being undertaken to mitigate pressures evident in the term funding markets in the United States and abroad," the Fed said.

"By committing to provide a very large quantity of term funding, the Fed actions should reassure financial market participants that financing will be available against good collateral, lessening concerns about funding and rollover risk," the Fed said.

The nine banks participating in the swap lines are: the European Central Bank, Bank of England, Bank of Japan, Bank of Canada, National Bank of Denmark, Bank of Norway, Reserve Bank of Australia, Bank of Sweden, and the Swiss National Bank.

Economist backs Fed's moves

Economist Richard Felson applauded the Fed's move, given "the unchartered waters the Fed is in, and the political pressure it faces."

"It's liquidity front-and-center, while simultaneously determining with the [U.S.] Treasury which institutions have to be saved, which it can let the private sector dissolve, and at the same time begin the process of buying distressed debt," Felson said. "One goal is lowering the LIBOR spread, and this should help."

Libor-OIS rose 219 basis points Monday, Felson said, "a clear sign banks remain reluctant to lend to each other."

Continue reading Fed, ECB, BOE, BOJ again add funds to financial system

Fed, ECB, BOE, BOJ again add funds to financial system originally appeared on BloggingStocks on Mon, 29 Sep 2008 15:14:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of EnglandBank of Japanbanking sectorBernankeBOEBOJbond marketcredit marketsdollar swapsECBEuropean Central BankFedinflationinterest ratesinthenewsLIBORovernight interest ratesswapsU.S. Federal ReserveU.S. TreasuryMon, 29 Sep 2008 15:14:00 EST