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banksters seek power to void deriv contracts when they lose money

Discussion in 'Historic Market Crashes' started by EO 11110, Mar 5, 2014.



  1. EO 11110

    EO 11110 He Hate Me Mother Lode

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    http://www.bloomberg.com/news/2014-...ct-to-prevent-a-repeat-of-lehman-cascade.html

    The Bank of England is seeking a global pact among banks to suspend default clauses in some derivatives contracts during a crisis, in a bid to ward off bank death spirals that cascade through the financial system.

    The U.K. central bank wants lenders and the International Swaps and Derivatives Association Inc., an industry group, to agree to temporarily halt claims on banks that become insolvent and need intervention, Andrew Gracie, executive director of the BOE’s special resolution unit, said in an interview.
     
    Ahillock, bulloncoins and phideaux like this.
  2. GOLD DUCK

    GOLD DUCK Mother Lode Found Mother Lode

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    QWAK,EO 11110,I am wondering :hmmmm2: if that would be concidered a harbenjer or an indicator of more bad and worse things to come :questionmark::dontknow:or perhaps a request for delay of exicution in the near future?:vollkommenauf::goodnight:

    They always knew sooner or later the penny would drop!:idea::thumbs_down:

    the DUCK :15_1_70v:
     
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  3. Usury

    Usury Gold Chaser Platinum Bling

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    That's ridiculous...they all rely on those contracts with each other to share risk and remain solvent. If they don't pay, then two things will happen:

    1) They also won't get paid on their contracts so as a sector overall, the same problem will exists--risk of crisis level chaos.
    2) No one will buy an insurance policy with an out clause like that and/or do business with a bank that defaults on its obligations....so they'll end up going under due to business reduction anyway.
     
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  4. hoarder

    hoarder Midas Board Mmbr Platinum Bling

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    This shouldn't surprise anyone who has been paying attention.
     
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