Comments on: Pretending to Regulate Derivatives http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/ Firedoglake weblog Fri, 17 Feb 2012 16:51:22 -0600 hourly 1 http://wordpress.org/?v=3.1.2 By: Adie http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901521 Adie Mon, 18 May 2009 14:47:11 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901521 <p>*snort* ;-P</p> *snort* ;-P

]]> By: MarkH http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901385 MarkH Mon, 18 May 2009 05:46:01 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901385 <blockquote><p>i love speeches and true debates, when delivered by people who know what the word nuance means.</p></blockquote> <p>All of my aunts are old. None are new.</p>

i love speeches and true debates, when delivered by people who know what the word nuance means.

All of my aunts are old. None are new.

]]> By: MarkH http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901382 MarkH Mon, 18 May 2009 05:42:37 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901382 <p>LOL What a hoot. Are they both goth? Do they enjoy the dark humor of that originating circumstance of their relationship? What a story to tell.</p> LOL What a hoot. Are they both goth? Do they enjoy the dark humor of that originating circumstance of their relationship? What a story to tell.

]]> By: MarkH http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901378 MarkH Mon, 18 May 2009 05:39:21 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901378 <p>A simpler but slower way is to set a date from whence there shall be no more CDSs. Then let all the existing ones proceed to be executed or fizzle until there are none left.</p> A simpler but slower way is to set a date from whence there shall be no more CDSs. Then let all the existing ones proceed to be executed or fizzle until there are none left.

]]> By: MarkH http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901370 MarkH Mon, 18 May 2009 05:29:01 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901370 <p>That might be an amazing funny magazine article to read: “How NOT to get hired by Wall Street by knowing too much”.</p> That might be an amazing funny magazine article to read: “How NOT to get hired by Wall Street by knowing too much”.

]]> By: MarkH http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901366 MarkH Mon, 18 May 2009 05:24:22 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1901366 <p>Using an existing model which has succeeded is appealing and reasonable. Any alternative might look worse. However, the part of this which has worked is not in the CDS market and the part of this which is most scary IS the CDS part. So, cross your fingers, don’t bet on it, keep watching it closely for cracks, escaping steam & such and be ready to step in with large wrenches to fix it at the first signs of problems.</p> Using an existing model which has succeeded is appealing and reasonable. Any alternative might look worse. However, the part of this which has worked is not in the CDS market and the part of this which is most scary IS the CDS part. So, cross your fingers, don’t bet on it, keep watching it closely for cracks, escaping steam & such and be ready to step in with large wrenches to fix it at the first signs of problems.

]]> By: sporkovat http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900986 sporkovat Sun, 17 May 2009 21:43:28 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900986 <blockquote><p>, Republicans and Democrats alike, have taken enough money that it would really be surprising if they didn’t do what the financial elites want them to do.</p></blockquote> <p>As Dick Durbinsays: Banks “Frankly Own The Place”</p> <p><a href="http://www.huffingtonpost.com/2009/04/29/dick-durbin-banks-frankly_n_193010.html" rel="nofollow">http://www.huffingtonpost.com/.....93010.html</a></p> <p>they get what they want when they support a candidate, and if they don’t, <em>they withold further support!</em></p> <p>imagine that. maybe ‘Progressives’ should try that someday, one of these even numbered years.</p> <p>by voting Democratic, no matter how often Democrats sell you out, you are also doing exactly what the financial elites want you to do, ratifying the charade.</p> <p>maybe someday ‘Progressives’ will stand for their principles, and not just gripe while Obama discredits Progressivism like Bush/Cheney did to Conservatism.</p>

, Republicans and Democrats alike, have taken enough money that it would really be surprising if they didn’t do what the financial elites want them to do.

As Dick Durbinsays: Banks “Frankly Own The Place”

http://www.huffingtonpost.com/…..93010.html

they get what they want when they support a candidate, and if they don’t, they withold further support!

imagine that. maybe ‘Progressives’ should try that someday, one of these even numbered years.

by voting Democratic, no matter how often Democrats sell you out, you are also doing exactly what the financial elites want you to do, ratifying the charade.

maybe someday ‘Progressives’ will stand for their principles, and not just gripe while Obama discredits Progressivism like Bush/Cheney did to Conservatism.

]]> By: Styve http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900905 Styve Sun, 17 May 2009 20:00:37 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900905 <p>In March, I got notice that the Chicago Mercantile Exchange was girding up for this clearing house charade.</p> <p>Don’t know more on the topic, so will just pass along what I got from bespacific.com on 3/17/09, with the headline, “SEC Approves Exemptions Allowing Chicago Mercantile Exchange to Operate as Central Counterparty for Credit Default Swaps.”</p> <blockquote><p> SEC Approves Exemptions Allowing Chicago Mercantile Exchange to Operate as Central Counterparty for Credit Default Swaps News release: “he Securities and Exchange Commission took further action to help increase the transparency of credit default swaps by approving conditional exemptions that will allow the Chicago Mercantile Exchange Inc. (CME) to operate as a central counterparty for clearing them. These conditional exemptions, based on a request by the CME and Citadel Investment Group LLC, provide the SEC with regulatory oversight of the central counterparty, and should enhance the quality of the credit default swap market and the Commission’s ability to protect investors.</p> <p> * Exemptive Order Regarding Chicago Mercantile Exchange Inc. and Citadel Investment Group, L.L.C.<br /> * Request for Exemptive Relief<br /> * Related postings on financial system </p></blockquote> <p>Out of curiosity, I pulled up some information on Citadel…</p> <p>Citadel Investment Group - Wikipedia, the free encyclopedia<br /><a href="http://en.wikipedia.org/wiki/Citadel_Investment_Group" rel="nofollow">http://en.wikipedia.org/wiki/C.....ment_Group</a></p> In March, I got notice that the Chicago Mercantile Exchange was girding up for this clearing house charade.

Don’t know more on the topic, so will just pass along what I got from bespacific.com on 3/17/09, with the headline, “SEC Approves Exemptions Allowing Chicago Mercantile Exchange to Operate as Central Counterparty for Credit Default Swaps.”

SEC Approves Exemptions Allowing Chicago Mercantile Exchange to Operate as Central Counterparty for Credit Default Swaps News release: “he Securities and Exchange Commission took further action to help increase the transparency of credit default swaps by approving conditional exemptions that will allow the Chicago Mercantile Exchange Inc. (CME) to operate as a central counterparty for clearing them. These conditional exemptions, based on a request by the CME and Citadel Investment Group LLC, provide the SEC with regulatory oversight of the central counterparty, and should enhance the quality of the credit default swap market and the Commission’s ability to protect investors.

* Exemptive Order Regarding Chicago Mercantile Exchange Inc. and Citadel Investment Group, L.L.C.
* Request for Exemptive Relief
* Related postings on financial system

Out of curiosity, I pulled up some information on Citadel…

Citadel Investment Group – Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/C…..ment_Group

]]> By: bigbrother http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900890 bigbrother Sun, 17 May 2009 19:41:50 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900890 <p>Enron..Conspiracy of fools…is a description of what happened and is being repeated daily now. The accounting rules…the investment rules…the off of the books massive porfolios that are not reported or regulated and they are downplaying the monumental equity decay that destroyed the global economy.<br /> Fools is the appropriate word.</p> Enron..Conspiracy of fools…is a description of what happened and is being repeated daily now. The accounting rules…the investment rules…the off of the books massive porfolios that are not reported or regulated and they are downplaying the monumental equity decay that destroyed the global economy.
Fools is the appropriate word.

]]> By: Knut http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900884 Knut Sun, 17 May 2009 19:40:12 +0000 http://firedoglake.com/2009/05/17/pretending-to-regulate-derivatives/#comment-1900884 <p>Ok, I’m getting way over my head here, but I always thought the point of an exchange was to pool risk, and that in an emergency someone steps in from within the exchange to bail the sysstem out, olike J.P. Morgan in 1907 (of course that led to the establishment of the Fed, because it was way too risky). If that’s the reasoning behind Geithner’s plan, it doesn’t make sense to me, because the risks are independent. There’s no averaging or pooling. As I said, I’m way over my head here.</p> Ok, I’m getting way over my head here, but I always thought the point of an exchange was to pool risk, and that in an emergency someone steps in from within the exchange to bail the sysstem out, olike J.P. Morgan in 1907 (of course that led to the establishment of the Fed, because it was way too risky). If that’s the reasoning behind Geithner’s plan, it doesn’t make sense to me, because the risks are independent. There’s no averaging or pooling. As I said, I’m way over my head here.

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