What is a conservative bank, based in Atlanta, doing making an aggressive acquisition of a credit card clearing company in Miami?
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Tired of earning profits through conservative business loans, the bank branches out with an aggressive purchase of credit card clearing company in Miami, ICon.
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In September a national retailer based in Ohio discovered that Scob had weaseled its way into headquarters, taking up residence on a server used for clearing credit card transactions.
The venture between the two Chicago firms is meant to launch within 30 days and would provide a fully integrated trading and clearing platform for credit default swaps, the complex derivative contracts that have been one of the flash points of the credit crisis.
So far, the deal is clearing necessary hurdles with credit ratings agencies, the market and regulators.
Regulators and major brokerage houses have been pushing for a centralized clearing solution to eliminate counterparty credit risk in order to free up capital for lending.
For example, since September 2005, the Federal Reserve Bank of New York has been leading a joint public-private initiative to improve arrangements for clearing and settling trades in credit default swaps and other OTC derivatives.
He also said the Fed is encouraging the development of a central counterparty clearing system for trading in credit default swaps and working on strengthening the resiliency of the short-term secured funding markets that left Bear in the lurch in March.
Credit default swaps becoming more exchange-oriented with centralized clearing perhaps even a consolidated tape.
With the scale heavily weighted to demand, it was not for nothing that new-issue clearing yields fell significantly in January, reaching new credit-crunch lows.
He asks the chief executive of the Association for Payment Clearing Services (Apacs), which represents the credit card industry, what the banks are thinking of lending money to people who will never be able to afford to pay it back.
In anticipation of the new regulations, DB set up a new derivative exchange-clearing unit called Markets Clearing for listed and over-the-counter derivatives for interest rates, foreign exchange, credit, commodities and equities contracts.
The venture between the two Chicago firms is meant to launch within 30 days and would provide a fully integrated trading and clearing platform for the complex derivative contracts that have been one of the flash points of the credit crisis.
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