Comments on: Regulatory arbitrage attempt of the day http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: youpijiufang http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/comment-page-1/#comment-3852 Wed, 08 Jul 2009 03:56:32 +0000 http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/#comment-3852 Horse donkey and Anglo-Saxon hybrid anvil? Family now occupied 贠 60% of the earth? Rich, and has been a world with guns to bark? Others to plunder the wealth. Then use to dig? Take the money to support those who come for the next rob his wealth provides more 䠼 attaching machine? The clown, this is why the dalai lama and hot 栯? Maria is the source of the market.
This past or being plundered all the people should be awake, such as Germany, boycott, these hybrids

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By: youpijiufang http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/comment-page-1/#comment-3851 Wed, 08 Jul 2009 03:55:13 +0000 http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/#comment-3851 马驴杂交而成的盎格鲁撒克逊 族现在占据了地球60%以上的 富,而且一直用枪炮一到世界 地去抢掠别人的财富.然后用 夺来的钱财去支持那些能为他 们下一步抢斥更多财富提供机 的小丑,这是为什么达赖及热 娅有市场的源头.
对此,各个过去或正在被掠夺的 地区的人民应觉醒起来,抵制如 同德,荷,法这些杂种的掠夺

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By: Leigh Caldwell http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/comment-page-1/#comment-3834 Tue, 07 Jul 2009 21:49:20 +0000 http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/#comment-3834 KenG, that’s exactly Felix’s point. Insurance, as currently regulated, may allow banks to get around capital requirements but it should not.

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By: nick gogerty http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/comment-page-1/#comment-3786 Tue, 07 Jul 2009 16:35:36 +0000 http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/#comment-3786 Felix, I think instead of regulation by constraint, regulation by separation is the best move. Risk is easy to measure when not obfuscated by structure. Glass Steagall worked great for a long time. I think some form of seperating the participating entities may be useful. Even if that left only a CDS (offerers) as mostly speculative bodies, it would provide price information and hopefully more transparency. Risk is OK, obfuscated risks or balance sheet are dangerous.

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By: KenG http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/comment-page-1/#comment-3776 Tue, 07 Jul 2009 14:39:49 +0000 http://blogs.reuters.com/felix-salmon/2009/07/07/regulatory-arbitrage-attempt-of-the-day/#comment-3776 I don’t see how your example about banks A and B is any different than the problems caused by AIG and Bear Stearns not having enough collateral to back up the insurance they sold. What is different? If you buy insurance from a seller who doesn’t have the capacity to pay off in case of a default, then risk hasn’t been lessened, and the capital requirements shouldn’t have been changed.

It sounds like more of the same shell game, where risk is moved around, split up, combined with other risks, and then hidden somewhere else so nobody knows for sure what the real risk is. In your simple 2-bank example, the idea that the two banks sharing each other’s risk somehow reduces the overall risk because it’s unlikely they will both suffer defaults is the exact same mentality that created the current disaster. What am I missing?

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