Tag:
Collateral
Latest Headlines
Latest Headlines
Bank of America's derivatives shift stokes concerns
Bank of America raised eyebrows not too long ago when it said intended to shift some derivatives assets to a unit that holds insured funds, apparently at the request of counterparties that were concerned about recent credit downgrades.
Recall that Bank of America's bonds had recently been down
Update: the irony of MF Global's bankruptcy court move
MF Global has filed for Chapter 11 bankruptcy court protection from creditors. While some thought there might be some prepackaged elements to the filing, those hopes were dashed, as talks with Interactive Brokers Group apparently fell apart in the morning. The company was in talks to buy some asse
Barclays pushes for transparent ETF practices
Since the Flash Crash of 2010, exchange traded funds have found themselves in the spotlight. Some wonder about the role these products, which are more complex than many realize, played in sparking the pyrotechnics.
It's fair to say that as the industry expands, the products are getting more or
Collateral managers at issue as SEC probes Magnetar CDO
There's been some grumbling on Wall Street as to why Goldman Sachs was prosecuted for its ABACUS CDO deals while other firms that engaged in similar trades have not.
To be sure, the SEC and the DOJ are looking into other deals, and we may yet see some charges against specific firms. We may als
Treasury exempts forex market from OTC rules
Many have suggested the government's financial regulatory zeal has waned. One need only look at the decision last week to exempt the $4 trillion-a-daily transactions forex market from the same sort of treatment that is in the works for OTC derivatives. The move comes at a time when the CFTC and SE
Transactions tax and other solutions doomed?
In the wake of the financial crisis, one idea that gained currency was to impose a tax on transactions . Typically, these proposals called for a 0.25 percent tax on the value of the shares purchased. A $100 stock would carry a tax of 25 cents. That doesn't sound like much, but it would add up f
Dodd-Frank end-user exemption at risk?
CNBC suggests that companies are a bit worried about recent statements by CFTC chairman Gary Gensler that indicated he believes Dodd-Frank grants the authority for the CFTC to impose margin requirements on end-user transactions. Recall that the issue was a big one in the run-up to Dodd-Frank's
Securities lending backfires on banks
Securities lending has a reputation as a sleepy sort of backwaters on Wall Street, rife with rough-and-tumble practices as unsavory brokers search for shares that can be lent.
Wall Street banks, sensing opportunity, created programs that called for big institutional clients, mainly pensions an
Banks fret over deflation
Is it time to start thinking about deflation and what it would mean to your bottom line? More banks are doing as much.
SunTrust has set up a special committee to analyze its exposure to deflation, Reuters reports. BB&T "ran its books through a stress test to gauge the bank's perform
Derivatives trading rules coming, hedgers concerned about collateral
The specific rules on derivatives trading are being set now, and the debate is hot. The CFTC has been tasked with writing them and it will hold an open meeting Oct. 1.
One issue that has already emerged is how so-called major swap participants will be defined. This is important because compani
