The Next Bailout: BofA Moves Derivatives into Insured Institution

By: Tuesday October 18, 2011 7:20 pm

This has been described as another bailout, and it’s not hard to see why. The derivatives go into the insured institution, protecting the counter-parties, and they would be paid off in the event of a failure. Notice that the counter-parties themselves are managing the process, requesting that their bets get implicit government backing. The notional value on these derivatives trades is $75 trillion, with a T. This includes their European derivatives exposure. And according to Bloomberg, JPMorgan Chase has already done this.


AIG’s Cassano Testifies Before FCIC Today as New Stories of Goldman Fraud Surface

By: Wednesday June 30, 2010 7:30 am

If Joseph Cassano, the head of AIG’s disastrous Financial Products unit, has granted an interview since the insurance giant melted down, I certainly don’t remember it. That’s what makes today’s Financial Crisis Inquiry Commission hearing so interesting. The theme is the derivatives market, and there will be a particular emphasis on AIG and Goldman Sachs, and how their trading played a role in the financial meltdown.

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