Derivatives – A Potential Financial Tsunami?
...Derivatives generate reported earnings that are often wildly overstated and based on estimates whose inaccuracy may not be exposed for many years.
-Warren Buffet
March 12, 2008 - By DAN APPLE and RICK BAUGNON - Business
High Finance Backfires on Alabama County
...when they issue bonds. “I don’t think there’s anyone who has been involved in the swaps and derivatives market to the extent that the Jefferson County sewer system was,” said Paul Maco, director for the Securities...
March 12, 2008 - By KYLE WHITMIRE and MARY WILLIAMS WALSH - Business
Morgan Stanley Chief Grappling With New Risk
...some highly lucrative risks — particularly by diving deeply into subprime mortgages, leveraged loans and complex derivatives — Mr. Mack had much to celebrate. “Do we take a lot of risk? Yes,” he said forcefully, in...
March 11, 2008 - By LANDON THOMAS Jr. - Business
OFF THE SHELF; Now Comes The Tough Part In Russia
...investors and regulators outside Russia. And then there are those really treacherous phenomena, like credit default swap derivatives. Book after book piles up about Mr. Putin, the Kremlin and the oligarchs, but a definitive book about Russia and globalization...
March 2, 2008 - By STEPHEN KOTKIN - Business - 1863 words
LETTERS; Bloomberg Says No (but Offers Advice)
...the damage that has been done to our economy by financial derivatives, those educated bets on market performance that are traded...the chaos in our housing markets, and still, the trade in derivatives is largely unregulated. Structural reform begins closer...
February 29, 2008 - Opinion - 645 words
PUBLIC LIVES; Letting His Racing Colors Show
...franchise. There is no sound of megadollar derivatives transactions being finessed by conference...and was co-head of its Global Credit Derivatives department, managing a risk position of derivatives with exposure in excess of $20 billion...
February 29, 2008 - By ROBIN FINN - New York and Region - 967 words
U.S. Investigates 2 Wachovia Employees
...said it was cooperating with subpoenas from the Justice Department and the S.E.C. regarding competitive bidding in the derivatives market. Investigators in November 2006 said they were examining potential bid rigging in the awarding of guaranteed investment...
February 29, 2008 - By REUTERS - Business - 218 words
Not Your Ordinary Swap Meet
...by Creditex, an interdealer execution platform for credit derivatives, and Markit Group, a price information service. The results...participants agreed in advance, through the International Swaps and Derivatives Association, to abide by whatever settlement price the auction...
February 22, 2008 - By DIANA B. HENRIQUES - Business - 936 words
French Bank Cites Lapses Since 2005
...to the report, Mr. Kerviel began his unauthorized trades in 2005, shortly after he joined the bank's Delta One equity derivatives trading desk, buying options and warrants on individual stocks, including Allianz, Deutsche Bank and Porsche. In 2007...
February 21, 2008 - By NICOLA CLARK - Business - 794 words
Document Says Trader's Rogue Bets Began in Summer
...court and spent 11 months in jail, claims that his superiors, including Mr. Mustier and the co-heads of equities and derivatives trading, Luc François and Christophe Mianné, were aware of his actions and in some cases even ordered him to execute...
February 20, 2008 - By NICOLA CLARK - Business - 857 words
New $2.8 Billion Write-Down Jolts Credit Suisse
...instrument is assigned an estimated price when no market price is readily available. The market for many mortgage-backed derivatives has dried up as the United States housing market deteriorates, leaving banks uncertain about the values of many assets...
February 20, 2008 - By DAVID JOLLY - Business - 478 words
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