Comments on: Closing loopholes http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/ 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: eddieblack http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/comment-page-1/#comment-9932 Fri, 11 Dec 2009 23:20:16 +0000 http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/#comment-9932 Regulations are crafted to be circumvented by those who draft them. Regulators can be circumvented if they are greedy or lazy. The real crisis in America is one of character.

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By: MattStiles http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/comment-page-1/#comment-9846 Thu, 10 Dec 2009 21:56:42 +0000 http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/#comment-9846 Or perhaps we should scrap the regulation model entirely. It seems you’re coming around to the fact that all regulations/regulators are eventually circumvented.

Can we not use existing laws against misrepresentation, misallocation, fraud, etc to deal with these financial miscreants? I’d rather have these matters in the hands of judges than bureaucrats.

If you lie, cheat or steal, you go to jail. It’s pretty simple, really.

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By: Norm43 http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/comment-page-1/#comment-9823 Thu, 10 Dec 2009 16:35:54 +0000 http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/#comment-9823 Felix (& Mike): Isn’t it possible that many of these transactions really *cannot* be exchange traded or cleared? It’s my understanding that accounting rules require companies to match very closely the terms of the risk they’re exposed to with the instrument they’re using to hedge that exposure. The consequence of not doing so, as I understand it, is that the instrument must be marked to market on the company’s income statement, which no CFO ever wants to happen. So companies with very specific risks – and surely that includes most public companies – won’t be able to hedge with generic, exchange-traded derivatives products. That’s where banks, swaps dealers and these customized OTC instruments enter the scene. How are companies supposed to precisely hedge risks without them?

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By: alea http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/comment-page-1/#comment-9817 Thu, 10 Dec 2009 15:54:11 +0000 http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/#comment-9817 “…it defines “swap execution facility” so broadly that two traders talking on the telephone — just like they do in the current OTC market — can be considered such a thing.”
Not true, the two traders have to go through an intermediary , so “swap execution facility” applies to interdealer brokers and electronic platforms like (thomson-reuters) tradeweb, and not to two traders talking directly to each other on the phone.

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By: EmilianoZ http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/comment-page-1/#comment-9815 Thu, 10 Dec 2009 15:25:07 +0000 http://blogs.reuters.com/felix-salmon/2009/12/10/closing-loopholes/#comment-9815 You’ve got to admire Mike Konczal for poring over all the legalese and finding the loophole.

Chapeau bas, Mr. Konczal!

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