Search Results for: derivatives

Derivatives Industry Report Collapses

By Simon Johnson The credibility of a major report commissioned by the “Derivative End Users Coalition” – run by big banks against implementing the Dodd-Frank reforms – just collapsed. As Andrew Ross Sorkin reports in the New York Times, the … Continue reading

What Did Robert Rubin Think About Derivatives?

By James Kwak First Bill Clinton said he got bad advice from Robert Rubin on derivatives. Then a Clinton adviser issued a statement essentially taking it back and blaming Alan Greenspan. (Jennifer Taub discussed some of the substantive issues on … Continue reading

Clinton Confesses: Rubin and Summers Gave Bad (strike that) Excellent Advice on Derivatives

The following guest post was contributed by Jennifer S. Taub, a Lecturer and Coordinator of the Business Law Program within the Isenberg School of Management at the University of Massachusetts, Amherst (SSRN page here).  Previously, she was an Associate General Counsel … Continue reading

“The Derivatives Dealers’ Club”

By James Kwak Robert Litan of Brookings wrote a paper on the derivatives dealers’ club — the small group of large banks that control most of the market for certain types of derivatives, notably credit default swaps. It’s a blunt … Continue reading

How To Kill OTC Derivatives Reform in Two Sentences

The post below, which looks like it could be extremely important, is by Mike Konczal, author of the popular (for those in the know) Rortybomb blog, a previous guest blogger on this site, and now a fellow at the Roosevelt … Continue reading

Fun with Derivatives

Fresh off my vacation, I have jury duty tomorrow, but today I got a jump on my fun reading for the courthouse – Traders, Guns, & Money, the anecdote-packed overview of derivatives by Satyajit Das, a prolific consultant, author, and … Continue reading

President Obama’s Implied Future For Derivatives

If you’ve worked on economic policy formulation – or in any large bureaucracy – you know how to get your boss to make the decision you want.  The key is to frame the options in such a way that he … Continue reading

Missing the Point

By James Kwak The Basel Committee’s recent decision to change the definition of the leverage ratio is bad news for two reasons. There’s the obvious: A smaller denominator means less capital. The leverage ratio requirement says, in principle, that banks … Continue reading

The Lame “Uncertainty” Defense

By James Kwak The indefatigable Brad DeLong has devoted his energies to singlehandedly protecting Larry Summers from the Internet (although, he makes pains to say, he likes Janet Yellen almost as much). Although I’m letting most of the Fed chair … Continue reading

Remember Citigroup

By Simon Johnson On Thursday of last week, four senators unveiled the 21st Century Glass-Steagall Act.  The pushback from people representing the megabanks was immediate but also completely lame – the weakness of their arguments against the proposed legislation is … Continue reading

A Growing Split Within Republicans On Too Big To Fail Banks

By Simon Johnson An interesting debate is developing within the Republican Party on how to approach the problem of too-big-to-fail financial institutions. On the one hand, a growing number of influential voices are pushing for measures that would limit the … Continue reading

Fed Governor Speaks Out For Stronger Rules

By Simon Johnson A powerful new voice for financial reform emerged this week – Sarah Bloom Raskin, a governor of the Federal Reserve System. In a speech on Tuesday, she laid out a clear and compelling vision for why the … Continue reading

The Market Has Spoken – And It Is Rigged

By Simon Johnson In the aftermath of the Barclays rate-fixing scandal, the most surprising reaction has been from people in the financial sector who fully understand the awfulness of what has happened. Rather than seeing this as an issue of … Continue reading

Lie-More As A Business Model

By Simon Johnson.  For more discussion of these issues, listen to NPR’s All Things Considered, July 7, 2012. On Monday, Bob Diamond – the CEO of Barclays, one of the largest banks in the world – was supposedly the indispensable man, with … Continue reading

Three More Governance Questions For The New York Fed

By Simon Johnson.  This is a long post, about 2500 words. Over the last several weeks on this blog, I have expressed a broad set of concerns about governance arrangements at the Federal Reserve Bank of New York. I have … Continue reading