Comments on: Counterparties http://blogs.reuters.com/felix-salmon/2010/04/26/counterparties-138/ A slice of lime in the soda Thu, 23 May 2013 23:51:59 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Citoyen http://blogs.reuters.com/felix-salmon/2010/04/26/counterparties-138/comment-page-1/#comment-14063 Citoyen Mon, 26 Apr 2010 21:04:36 +0000 http://blogs.reuters.com/felix-salmon/?p=3570#comment-14063 Curmudgeon: Scott James' lament was hardly a rant. Stossel's failure to identify the source of his post is poor craftsmanship and laziness at the very least, and a conscious effort to mislead readers at worst. Fact is, he didn't report any of the facts in the matter and should have done so. The invention of a new medium doesn't erase well-established, valuable and necessary standards of conduct. Fox News makes up enough phony "facts" as it is. When it is actually using real facts that it did not find and verify on its own, it owes an *explicit* hat tip to those who actually did the work. If only as a matter of common courtesy. Not that one finds much of that on Fox, either.... Curmudgeon: Scott James’ lament was hardly a rant. Stossel’s failure to identify the source of his post is poor craftsmanship and laziness at the very least, and a conscious effort to mislead readers at worst. Fact is, he didn’t report any of the facts in the matter and should have done so. The invention of a new medium doesn’t erase well-established, valuable and necessary standards of conduct. Fox News makes up enough phony “facts” as it is. When it is actually using real facts that it did not find and verify on its own, it owes an *explicit* hat tip to those who actually did the work. If only as a matter of common courtesy. Not that one finds much of that on Fox, either….

]]> By: MattF http://blogs.reuters.com/felix-salmon/2010/04/26/counterparties-138/comment-page-1/#comment-14051 MattF Mon, 26 Apr 2010 14:45:00 +0000 http://blogs.reuters.com/felix-salmon/?p=3570#comment-14051 It's neat that the $100,000,000,000,000 banknote has an anti-counterfeiting feature. Does that make it more valuable or less valuable? It’s neat that the $100,000,000,000,000 banknote has an anti-counterfeiting feature. Does that make it more valuable or less valuable?

]]> By: Curmudgeon http://blogs.reuters.com/felix-salmon/2010/04/26/counterparties-138/comment-page-1/#comment-14050 Curmudgeon Mon, 26 Apr 2010 14:12:09 +0000 http://blogs.reuters.com/felix-salmon/?p=3570#comment-14050 Regarding Scott James' NYT rant, I simply don't know what to say. At best it's pining over a world long gone. At worst it's a trip down Irrelevant Lane. I should bill him for the three minutes it took me to read it. Regarding Scott James’ NYT rant, I simply don’t know what to say. At best it’s pining over a world long gone. At worst it’s a trip down Irrelevant Lane. I should bill him for the three minutes it took me to read it.

]]> By: longandshort http://blogs.reuters.com/felix-salmon/2010/04/26/counterparties-138/comment-page-1/#comment-14048 longandshort Mon, 26 Apr 2010 09:50:49 +0000 http://blogs.reuters.com/felix-salmon/?p=3570#comment-14048 Simple way to call the bluff on the 'end users' of derivatives who don't want to pony up variation margin on their swaps: 1) Have them sign a document that states that should their swap counterparty bank fail, they will not seek remedies from the FDIC, Fed, Tsy, other taxapayer supported resource to make good any losses 2) Have the banks sign a similar document that the obligations of clearing houses in which they have equity (e. g., ICE Trust) and swaps for which they don't collect variation margin are obligations of non-bank subsidiaries and not guaranteed by the FDIC insured institution. Free market advocates like Jamie Dimon and LLoyd Blankfein would be standing in line to sign those documents along with all those end users who hate government regulation. Simple way to call the bluff on the ‘end users’ of derivatives who don’t want to pony up variation margin on their swaps:

1) Have them sign a document that states that should their swap counterparty bank fail, they will not seek remedies from the FDIC, Fed, Tsy, other taxapayer supported resource to make good any losses

2) Have the banks sign a similar document that the obligations of clearing houses in which they have equity (e. g., ICE Trust) and swaps for which they don’t collect variation margin are obligations of non-bank subsidiaries and not guaranteed by the FDIC insured institution.

Free market advocates like Jamie Dimon and LLoyd Blankfein would be standing in line to sign those documents along with all those end users who hate government regulation.

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