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banksters seek power to void deriv contracts when they lose money

EO 11110

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#1
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.
 

GOLD DUCK

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#2
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:
 

Usury

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#3
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.
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.
 

hoarder

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#4
This shouldn't surprise anyone who has been paying attention.