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Old 05-06-2010, 01:19 PM
 
Location: Los Altos Hills, CA
36,659 posts, read 67,526,972 times
Reputation: 21244

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Quote:
California’s treasurer today asked six banks that underwrite municipal bonds for his office to say whether they bet against the state with credit default swaps and how much swaps are sold to investors who don’t own the debt.

Treasurer Bill Lockyer sent letters to Bank of America Merrill Lynch, Barclays Plc, Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley, as a follow-up to questions he sent them in March.

Lockyer said he is concerned that speculative trading of credit default swaps, the buying and selling of the insurance contracts by investors who don’t own the securities, could boost borrowing costs. He said that may occur if the transactions create an unjustifiably negative perception of California’s risk of default.
California Demands More Data on Credit Default Swaps (Update1) - BusinessWeek

This is so shady. And Evil.

They are basically betting that govts fail. Worst of all, its perfectly legal because of deregulation and no oversight.

Foxes guarding the chicken coop.

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Old 05-09-2010, 10:06 PM
 
Location: On the "Left Coast", somewhere in "the Land of Fruits & Nuts"
8,852 posts, read 10,456,964 times
Reputation: 6670
Quote:
Originally Posted by 18Montclair View Post
California Demands More Data on Credit Default Swaps (Update1) - BusinessWeek

This is so shady. And Evil.

They are basically betting that govts fail. Worst of all, its perfectly legal because of deregulation and no oversight.

Foxes guarding the chicken coop.

Nice to see some local attention on this subject now, even if most folks eyes kinda "glaze over" when it comes up, or else they just buy the usual "Sub-primes caused all the melt-down" B.S.!

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