The Goat Pen

sardis wrote:

Bklyn wrote:

hedge wrote:Not sure how this is going to affect anything, if somebody gets upside down on a huge trade, their margin is wiped out anyway. It's what they lose over and above that that I'm worried about...

Derivatives traders should be prepared to lose the initial margin they post at clearinghouses if it’s needed to prevent a financial crisis, global markets regulators said.

The “margin is likely to constitute a very large pool of assets which would, if it can be used, provide a high degree of loss-absorbency” to help stabilize a central counterparty, or CCP, the International Organization of Securities Commissions and the Committee on Payment and Settlement Systems said in a joint report published today.

http://www.bloomberg.com/news/2013-08-1 ... s-say.html

The Dodd Frank rules regarding clearing (some) derivatives in a Clearinghouse form is a very good thing for transparency on exposure and pricing. I definitely don't have a problem with it. The costs are higher, obviously, so the big question becomes what do foreign banks do. They have no clearing rules in those markets yet, so if they avoid US banks (good luck, but not impossible) as counterparties in their derivative strategies then they are clear of Dodd Frank. That may hurt the bottom line of some US banks...potentially.

Knowing Europe, though, they will come out ultimately with regulations that look like French tax rules and make everyone rush back to the US structure.

I don't see how transparency changes the risk because, as we have seen, nothing can be enforced even if known. I know American banks would probably lose profits to Euros, but they also lose the risk. Besides, what Europe is going through with their banks I would be surprised if they don't have some regulation themselves when it is all said and done with.

sardis wrote:I am not a legal expert, but, IMO, George asks a good question. If the ACA was passed through congress with the employer mandate deadlines explicitly given, how can you delay it without amending through the same process? Now, Mr. Will may be in err because the Act may have given the executive branch authority to make such changes. But outside of that, how can you delay a deadline written in the law?

http://www.washingtonpost.com/opinions/ ... story.html

eCat wrote:I never heard of "stop and frisk" going on in New York and its been going on for 11 years.

Who puts up with this shit?