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Derivatives

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  • Goldman Pressed for CDO Loss Settlement Thursday, 29 Apr 2010 | 8:21 AM ET
    LLoyd Blankfein testifying before House Financial Services Committee

    Goldman is in talks over a potential settlement with an investor that claims that it lost money and went out of business after buying into a $1 billion mortgage-backed security, the FT reports.

  • Warren Buffett

    For Warren Buffett, it's a matter of simple fairness: "If the restaurant only gets paid for an 8-ounce steak, they don't want to give you the 12-ounce one."   It's a concept at the core of his argument against allowing the government to require collateral on existing derivatives contracts.

  • Senator Benjamin Nelson (D-Nebraska) in a 2009 photo taken outside the U.S. Capitol

    Nebraska's Democratic Senator Ben Nelson is quoted by Bloomberg as saying he and his wife's long-held stake of up to $6 million in Berkshire Hathaway, does not create a conflict of interest for him on the financial regulatory bill currently at the center of a Capitol Hill fight.

  • What is a Market Maker? Wednesday, 28 Apr 2010 | 11:43 AM ET

    The job of a market maker is to determine a price at which the trader is willing to buy a particular product AND a price at which that same trader will sell that same product at the same moment in time. Yes – a market maker will give you a price to buy, or sell – and they are generally indifferent to what you do, they just want you to do business.

  • What's Really Inside a 'Toxic Asset' Wednesday, 28 Apr 2010 | 10:58 AM ET

    When housing went from boom to bust, mortgages (especially subprime and Alt-A loans) were at the center of the economic crisis. And the term 'toxic asset' was born.

  • The Best Trade on Financial Regulation Monday, 26 Apr 2010 | 8:21 PM ET

    At least one company will benefit immediately from Washington’s reforms.

  • Warren Buffett

    Senate Democrats have killed a provision of their proposed derivatives bill that would have exempted existing contracts from collateral requirements.  Warren Buffett's Berkshire Hathaway has been lobbying in favor of the exemption.

  • Bank Defaults Are Starting to Slow: FDIC's Bair Friday, 23 Apr 2010 | 3:04 PM ET

    Bank defaults have begun to slow and will probably peak toward the end of this year, FDIC chairman Sheila Bair told CNBC Friday.

  • Bove: Goldman Case Weak, but Risky for System Monday, 19 Apr 2010 | 7:56 AM ET

    Veteran financial analyst Dick Bove, with Rochdale Securities, sent out a research report Monday morning calling the SEC’s case against Goldman Sachs weak, but says the events of Friday could be setting the stage for another financial system collapse.

  • Are Toxic Assets Out of The Banking System? Thursday, 15 Apr 2010 | 4:21 AM ET

    US financial companies still have more than a $1 trillion on their balance sheets, but analysts say they are unlike to stem the recent rally in financials.

  • CDSs Will Come Under Close Scrutiny: EU's Barnier Thursday, 1 Apr 2010 | 8:36 AM ET

    Credit default swaps (CDS) will be looked at closely to ensure transparency but they aren't necessarily going to be banned, EU Financial markets commissioner Michel Barnier told CNBC.

  • Commentary: Alabama, Milan Make Bankers Nervous Friday, 19 Mar 2010 | 7:33 AM ET

    While Alabama and Milan are rarely mentioned in the same breath, both locations now share something: they are making bankers nervous.

  • European Leaders Call for Crackdown on Derivatives Wednesday, 10 Mar 2010 | 10:46 AM ET
    Luxembourgian Prime Minister Jean-Claude Juncker and German Chancellor Angela Merkel.

    Political leaders in Europe and, increasingly, the US are calling for more scrutiny of derivatives. The New York Times explains.

  • Greece to Go to IMF if EU Refuses Aid: Report Wednesday, 10 Mar 2010 | 7:31 AM ET

    Greece is likely to formally ask the European Union for financial aid if the cost of borrowing does not fall in coming weeks and, if it doesn't get it, may go to the International Monetary Fund, Greek government officials told Dow Jones Newswires.

  • Greek CDS Overtures Fall on Deaf Ears in Washington Wednesday, 10 Mar 2010 | 4:38 AM ET

    Greek leaders' overtures for far tougher curbs on credit default swaps fell largely on deaf ears in Washington, but they'll go back to Athens with some sage advice from local policy wonks: look in the mirror and don't blame market messengers for your debt woes.

  • Curbing Derivatives Might Hurt, Not Help, Greece Wednesday, 10 Mar 2010 | 4:03 AM ET
    Oil traders on the floor of the New York Mercantile Exchange, New York.

    The absence of credit default swaps could push a country's borrowing costs even higher.

  • The Swaps That Swallowed Your Town Sunday, 7 Mar 2010 | 10:59 AM ET
    NYSE Traders

    As more details surface about how derivatives helped Greece mask their debt load, let’s not forget that the wonders of these complex products aren’t on display only overseas. Across the USA, municipalities, school districts, sewer systems and other tax-exempt debt issuers are ensnared in the derivatives mess. The New York Times explains.

  • The EU Looks for a Legal Way to Bail out Greece Friday, 5 Mar 2010 | 3:48 AM ET

    The European Commission invited regulators, central banks, ratings agencies, fund managers and brokers for a technical meeting Friday in Brussels to discuss the fundamentals of the credit default swaps market.

  • Already, the political momentum to force meaningful changes has ebbed as banks returned to profits and bonuses last year, and broke free of government control, the NY Times reports.

  • Banks Bundled Bad Debt, Bet Against It and Won Thursday, 24 Dec 2009 | 5:29 AM ET

    Regulators are looking into whether investment banks deliberately sold risky derivatives, and then bet on the securities failing, the New York Times reports.