In March, the FSA said it was investigating allegations that Barclays had mis-sold complex financial contracts called swaps to some of its business clients.
It will go wider than just the attempted manipulation of interest rates for which Barclays was punished by regulators last week, to presumably include the mis-selling of PPI insurance and the inappropriate sales of complex financial products called swaps that were sold to small businesses ( see this blog from last week for more details).
That said, he will not do an investigation of precisely who was responsible for the sins of the past, such as the attempts to rig Libor, the misselling of PPI credit insurance and the inappropriate sales of complicated financial products such as swaps to small businesses.
Barclays has also been caught up in another investigation, relating to the mis-selling of complex financial products - interest rate swaps - to small businesses.
Lightly regulated and nearly opaque, hedge funds played a central role in the creation of credit-default swaps and other financial exotica that led to the economic collapse of 2008.
Unregulated swaps trading in the financial sector is partially what brought the U.S. economy to its knees in 2008.
Assured Guaranty, and the other big monolines like MBIA and Ambac Financial Group, use credit default swaps and other credit derivatives to insure bonds.
FORBES: Left Overs of the Financial Crisis: Last Monoline to Lose AAA-Rating
If there's to be a Greek disorderly default (hypotheticals are Greek too), not only does it trigger default swaps sweeping through the financial sector, but it raises the obvious question for the bond markets: if eurozone partners will let Greece go, why not Italy, Spain, Portugal or Ireland, so who's next?
Clearly, the brutal financial damage that swept the financial community due to unregulated, little-understood derivative contracts like credit default swaps is one of the most controversial issues of the financial meltdown.
It ignored, for instance, the rise of risky, exotic new financial instruments, primarily credit-default swaps.
Economic growth will help prevent another financial time bomb--credit default swaps, a form of debt insurance--from exploding.
This ETF holds US Treasuries, NYSE 30 Year Treasury Index Swaps, and Goldman Sachs Financial Square Government Fund.
New, exotic financial instruments, such as credit default swaps, are being cast as one of the principal villains in the credit crisis.
AIG's collapse stemmed largely from its array of exotic financial products such as credit-default swaps, which went sour when the U.S. housing market turned south after 2006.
The Senate also rejected an amendment that would outright ban naked credit default swaps, which basically are a bet on the future creditworthiness of a company or debt issuer. (The House version of financial reform did ban naked credit default swaps).
This forced financial firms to increase collateral for credit default swaps--which meant more calls for new capital.
The film touches on the real world reasons for the financial meltdown, including CDOs and credit-default swaps, while focusing on the immediate drama facing the characters.
Swaps are among the most profitable types of financial derivatives carried out by the banks.
Swaps are derivative trades used by banks, financial companies and commercial companies to offset risks or bet on certain outcomes.
But the company's Financial Products division, which wrote the credit-default swaps that forced AIG to be bailed out, was created while you were CEO.
That means things like credit default swaps and the unbelievably complicated transactions that resulted in the financial meltdown would be absolutely forbidden.
FORBES: The Unintended Consequences Of The Greatest Economic Experiment
The 0.95% expense ratio may be reduced by interest income earned on cash and financial instruments since the fund will get its desired exposure with leveraged swaps while maintaining a large cash position.
FORBES: Portfolio Protection Just In Case Inflation Never Comes
One such monster could be the destruction of credit default swaps (CDS), an insurance for the kind of financial meltdown happening in Greece.
The polemical edge is unrelenting: deregulation of the financial markets was a disaster, and piling collateralized debt obligations and insurance swaps atop sub-prime mortgages was insane.
Germany banned naked short selling of credit-default swaps, German Treasury bonds, and the stocks of major German financial firms.
Markit, for example, gathers information from a large collection of financial services companies to provide an independent view on the value of credit default swaps.
FORBES: Open Source for Vertical Apps: Is Wall Street Ready?
There would be no collaterialised debt obligations, (CDOs), no credit default swaps (CDS), indeed much of the complexity of the financial markets would simply disappear in a puff of smoke.
FORBES: Microsoft's Excel Might Be The Most Dangerous Software On The Planet
During the 2008 economic crisis, terms like CDOs, credit default swaps, and other derivatives once confined to the vernacular of the financial industry became household terms as analysts tried to explain the fading fortunes of the global economy.
The derivatives bill will become part of the financial reform legislation winding its way through the Senate, and some believe the swaps desk provision will be used as a bargaining chip as the full Senate argues over what issues have yet to be ironed out.
Oh, AIG is a bit more of a problem, but forbidding them from issuing things like credit default swaps to avoid regulation by the insurance regulators and the insurance regulators forbidding them from insuring financial transactions that are not easily understood and rated would go a long way.
应用推荐