In the domain of derivative contracts like credit default swaps or auction-rate preferreds (which even George Soros didn't know existed) or complex collateralized debt obligations of mortgage-backed bonds, there was a "failure to know what isn't known, " and the ramifications for not knowing were huge.
The ECB's auction may make a credit crunch less severe, but it is not enough to avoid one.
The immediate, under-the-radar problem for the municipal bond market is that borrowers relied on banks to backstop their credits and lower short term funding costs when the credit crisis shut the door on auction rate preferred financing.
Or the Federal Reserve could add to the alphabet soup of lifelines created in the last year to handle the credit crisis, including a variety of auction and loan programs to help banks deal with troubled balance sheets.
Relevant links are below, including the initial Reddit post, both videos and the auction, so while our credit cards will remain securely in our wallets those who are more trusting -- or just can't believe that anyone would would be dumb enough to try and sell a fake -- can put a bid in if they so choose.
It was as if the credit crunch and the sub-prime crisis had been left firmly at the elegant auction house door, along with dogs, muddy gumboots and maxed-out credit cards.
The world's largest online auction site eBay has been targeted by new credit card scams.
Corporations became heavy sellers of auction rate securities last year even before the credit crisis, because of accounting rule changes that made them less advantageous.
On Dec. 14, while he was riding Amtrak's Acela train from New York to Washington, he opened an e-mail that detailed problems in the auction-rate markets, which were seizing up because of the blossoming credit crisis.
To help relieve the pressures in the interbank markets, the Federal Reserve among other actions recently introduced a term auction facility (TAF), through which prespecified amounts of discount window credit can be auctioned to eligible borrowers, and we have been working closely and cooperatively with other central banks to address market strains that could hamper the achievement of our broader economic objectives.
Cuomo has opened a number of investigations into Wall Street, including the auction-rate probes, which continue, as well as activities in the credit default swap market and other signs of alleged fraud.
They could still close down or auction off banks run by thieves, which make it impossible for Russia to develop a functioning credit system.
The non-TARP lenders say the auction is unfair because it keeps them from using their claims to make a non-cash "credit" bid.
The credit rating agency referenced the December 3 offer by the Greek government to private investors to participate in a Dutch auction to exchange their sovereign bonds for short-term paper issued by the European Financial Stability Facility (EFSF).
FORBES: Greece In Default Once Again On Troika-Imposed Bond Buyback, S&P Says
This is a nexus of private-equity and hedge funds, money-market funds and auction-rate securities, non-banks such as GE Capital and new securities such as CDOs and credit-default swaps.
应用推荐