Conflicting signs are emerging in Washington over whether JPMorgan Chase’s surprise trading loss will spur tighter regulation on Wall Street, The New York Times reports.
JPMorgan’s next move depends on what happens in the credit markets. If investors become fearful about companies’ prospects , JPMorgan’s bet could face even bigger losses, The New York Times reports.
While few other banks, if any, pursue the complex strategies that led to JPMorgan’s losses, many traditional lenders regularly buy and sell securities, and make bets with derivatives, as part of their core operations, the NY Times reports.
House Republican attempts to blunt Dodd-Frank's regulatory requirements on derivatives would remove transparency and "allow these prices to continue to be secret," Rep. Barney Frank told CNBC Thursday.
Monday, 12 Mar 2012 | Posted By:
| Source: CNBC.com
The triggering of insurance payments on Greek sovereign debt should be a "non-issue" for the markets, as they will happen in an orderly fashion, a representative of the International Swaps and Derivatives Association (ISDA) told CNBC on Monday.
European Union diplomats and the European Parliament agreed on Thursday to overhaul regulation of the roughly $700 trillion derivatives market, a move that will make it easier to control one of the most opaque areas of finance.
A group of specialist banks are profiting from Europe's financial crisis, thanks to a surge in demand for securities which allow traders to bet against bank stocks and government bonds.
The governor of France’s central bank has said Britain is more deserving of losing its top-notch credit rating than France as Paris braces itself for a potential downgrade of the country’s triple A status.
Earlier this year, Deutsche Bank quietly decided to reduce its exposure to Italian government bonds. But it did not do that by simply selling debt; instead it achieved this partly by buying protection against sovereign default with credit derivatives contracts. The FT reports.
In a conference call following this morning’s earnings announcement, JPMorgan Chase Chief Financial Officer Doug Braunstein basically laughed off the idea that a London-based trader in the bank’s chief investment office was engaging in large proprietary trades that were distorting the market in credit default swaps for investment grade corporate bonds.... Read More