Thoughts on this!!!!

[InformedConsent]

Originally Posted by Wendell Phillips

The policy change was the enactment of safe harbor provisions of Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 that exempt derivative contracts from bankruptcy. Congress gave in to the pressures of the powerful banking lobby. This, together with the repeal of the provisions of Glass-Steagall, enabled banks and their parent holding companies to trade in derivatives (viz. mortgage-backed securities) on the financial markets with immunity. It was the sale of these securitized mortgages, and subsequent default on the repurchase agreements, that triggered the bank failures, the stock market crash, and subsequent recession.

Those derivatives were developed in the first place to hedge what everyone in the industry knew were unacceptable risks foisted on banks by the government's demands that low-income and/or high risk borrowers be given no/low money down mortgages on little to no documentation.

Refer back to Mozilo's lawyer's statement:
http://www.city-data.com/forum/28180008-post63.html

The misrepresented risk in the MBS on which the derivatives were based caused the whole thing to come crashing down.

More detail:
Peter J. Wallison: The Price for Fannie and Freddie Keeps Going Up - WSJ.com

[swagger]

Originally Posted by lucknow

Excuse me but the last time I checked, Canada was NOT part of the EU. LOL.

Excuse me but your location says: "Beautiful Niagara Falls ON.", and you're promoting the passing of some new law. So either you're lying about your location, or you're too... *ahem* to have grasped what should have been very obvious, which is that I was telling YOU - someone who claims to be in Ontario, Canada - to pass whatever laws you want... IN CANADA.

Triple smack right back at ya.

(What the **** are they teaching kids these days??? Jiminy Christmas, nobody knows how to THINK anymore!)

[lucknow]

Originally Posted by swagger

Pass whatever laws you want in Canada. Down here, we go by the terms of the employment contract. The board of directors, along with the shareholders, approve or deny contact terms.

You want to protest the salary or bonus of some large company bigwig? Buy a share of stock and start attending stockholder meetings. THAT is how you work within the free market. You don't legislate every little whim. That's for weaklings that have no ability to think or act for themselves.

The OP is about the LAW in the EU, not Canada!!!!