derivatives

Mar 052014
 
Swaps, COPs & Lingering Questions

Good description of Certificates of Participation and other terms in the Detroit Bankruptcy. Curt Guyette, Investigative Reporter, ACLU of Michigan, February 5, 2014 In 2005, the city of Detroit faced a monumental dilemma: It desperately needed to borrow more than $1.4 billion to help shore up its two pension systems, but doing so would far […]

Jan 062014
 
Jerome Goldberg questions EM Kevyn Orr over giveaway to Bank of America, UBS, on Jan. 3, 2014

Attorney Jerome Goldberg, appearing on behalf of City of Detroit retiree David Sole, questions Emergency Manager Kevyn Orr regarding the interest rate swaps deal, viewed by many as another gift to the very banks that destroyed Detroit’s neighborhoods using subprime mortgages and that have been charged and convicted of fraud of all sorts. Or click […]

Jan 032014
 
 Trial lifts lid on banks’ looting of Detroit

Kris Hamel, Detroit, December 30, 2013 Something unexpected happened in the city of Detroit bankruptcy case in court on Dec. 18. Judge Steven Rhodes adjourned the trial, which had been called to get approval for a settlement on “termination fees” that the city allegedly owes to Bank of America and United Bank of Switzerland. The […]

Dec 262013
 
Demos Hails Judge Rhodes’ Order to Renegotiate Detroit’s Swaps Deal Settlement with Big Banks

Demos press release, December 19, 2013 NEW YORK — Yesterday, U.S. Bankruptcy Judge Steven Rhodes grilled Jones Day lawyers representing the city of Detroit and the city’s Emergency Manager Kevyn Orr over a settlement reached outside of the bankruptcy process between the city and Bank of America and UBS to pay the termination fees of […]

 December 26, 2013  Posted by at 1:31 am Uncategorized Tagged with: , , ,  No Responses »
Oct 212013
 

Conclusion from  Collapse At Hand, by Paul Craig Roberts: The US government should simply cancel the $230 trillion in derivative bets, declaring them null and void. As no real assets are involved, merely gambling on notional values, the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would […]

 October 21, 2013  Posted by at 3:28 am Uncategorized Tagged with: , ,  No Responses »
Jul 042013
 

By Alex Barker in Brussels and Philip Stafford in London, Financial Times, July 1, 2013 11:31 am Investment banks’ 20-year grip over credit insurance markets has come under regulatory assault as Brussels served charges against 13 banks for allegedly conspiring to block exchanges from challenging their business model. The formal European Commission charge-sheet, running to […]

 July 4, 2013  Posted by at 1:55 am Uncategorized Tagged with: , ,  No Responses »
Jun 302013
 
Derivatives are a Tool for Deceit and Deception

Excerpts: Derivatives are not always “financial weapons of mass destruction,” as Warren Buffett famously called them. But they are often weapons of mass deception. “The funny part of the story,” Mr. Quirk wrote in the July issue of Chronicles Magazine, “is that the cities keep paying [interest rate swaps] despite the fact they have a […]

 June 30, 2013  Posted by at 10:18 pm Uncategorized Tagged with: , ,  No Responses »
Jun 202013
 
Just what are derivatives?

Too Bad Not to Fail By William J. Quirk, The American Scholar, Summer 2010 In “Babylon Revisited,” F. Scott Fitzgerald’s 1931 short story about the aftermath of the 1929 Wall Street crash, Fitzgerald makes the point that such collapses are slips in morality as much as financial failures. Charlie Wales, the story’s emotionally fragile hero, […]

 June 20, 2013  Posted by at 4:38 am Uncategorized Tagged with: , ,  No Responses »
Apr 132013
 
Wall Street’s Tax on Main Street

Bt Gtetchen Morgenson, New York Times, Aug. 6, 2011 AMID all the talk of debt and default in Washington last week, tiny Central Falls, R.I., went bankrupt. Like many states and cities in these hard economic times, Central Falls — population: 19,000 — was caught short by hefty pension obligations and weak tax revenue. It […]

Apr 112013
 

How Banks Could Return the Favor By GRETCHEN MORGENSON, June 9, 2012, New York Times LIKE millions of homeowners, shrewd state and local governments are looking to refinance. Interest rates have hit rock bottom. So why not save some public money by replacing old debts with new ones at lower rates? The bad news for […]

 April 11, 2013  Posted by at 7:40 pm Uncategorized Tagged with: ,  No Responses »