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This note discusses the case for exempting foreign exchange derivatives from recent regulatory requirements for over-the-counter derivatives, including clearing, trade competition, and minimum collateral requirements. My conclusion is that the arguments that have been made for such an exemption...
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In the wake of the recent financial crisis, over-the-counter (OTC) derivatives have been blamed for increasing systemic risk. Although OTC derivatives were not a central cause of the crisis, the complexity and limited transparency of the market reinforced the potential for excessive risk-taking,...
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forfeited if the bank does not meet its capital requirements. This memo underscores the benefits of contingent deferred …
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detail, Darrell Duffie walks readers step-by-step through the mechanics of large-bank failures. He identifies where the … cracks first appear when a dealer bank is weakened by severe trading losses, and demonstrates how the bank's relationships … exposure to the dealer bank, the bank is forced to signal its strength by using up its slim stock of remaining liquid capital …
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detail, Darrell Duffie walks readers step-by-step through the mechanics of large-bank failures. He identifies where the … cracks first appear when a dealer bank is weakened by severe trading losses, and demonstrates how the bank's relationships … exposure to the dealer bank, the bank is forced to signal its strength by using up its slim stock of remaining liquid capital …
Persistent link: https://www.econbiz.de/10014487800