Posted on 03/26/2009 6:35:56 PM PDT by rabscuttle385
Treasury Secretary Tim Geithner said that he likely will not ban one of the key financial instruments that led to the collapse of AIG and a number of other institutions.
"My own sense is that banning naked default swaps isn't necessary and wouldn't help fundamentally in this case," Geithner told Rep. Joe Donnelly (D-Ind.) when asked about the value of the instrument.
Credit default swaps were insurance policies offered by AIG and other companies on bundles of toxic assets, allowed under the assumption that increasing property values would fuel increased value for mortgages. Under those assumptions, the credit default swaps would only rarely have to be paid out.
Geithner said it would be too difficult to distinguish under the law what is a legitimate business risk (or "hedge") versus what constitutes a major gamble.
(Excerpt) Read more at briefingroom.thehill.com ...
A rational, sane President would have fired Geithner long before now. Heck, a rational, sane President would never have nominated Geithner in the first place.
It should be pointed out that the republican party is the one that made this. BS, possible.
Gramm attached it to a omnibus authorization bill in the middle of the night.
And an ethical President would have thrown the book at him. And Daschle too.
And believe YOU me, Freddie and Fannie are still writing subprime mortgages AS WE SPEAK.
Another bubble is in the making.
This one will stink A LOT more than the first.
Effing liberal leftist idjits.
"A house in every pot. A house is my right."(sarc.)
Anyone who has cash, get it into commodities.
Silver, Copper, whatever, while its still cheap.
At first I thought Timmy was just a crook. Now I think he really was too stupid to figure his own taxes...and is a crook.
Naked swaps of toxic assets and credit defaults....
Is there anyone on FR who can explain what this means, in English?
Thanks in advance.
>>>Geithner unwilling to ban credit default swaps [naked swaps]>>>>>>>>>>>>>>>>
And believe YOU me, Freddie and Fannie are still writing subprime mortgages AS WE SPEAK.<<<<
The government won’t regulate any of this stuff and then blames business for taking advantage of it.
Geithner said it would be too difficult to distinguish under the law what is a legitimate business risk (or “hedge”) versus what constitutes a major gamble.
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TurboTax Timmy is an ass**** ,, he’s just feeding his buddies.. it’s simple to determine if it is a legitimate “hedge” ,, if they don’t own the underlying security it ISN’T A HEDGE ,, IT’S A BET ,, they don’t have a dog in the fight... Do they all think we’re brain dead out here?
“It should be pointed out that the republican party is the one that made this. BS, possible. Gramm attached it to a omnibus authorization bill in the middle of the night.”
You missed the memo that said we are only to blame Democrats and GSEs for this debacle.
“And believe YOU me, Freddie and Fannie are still writing subprime mortgages AS WE SPEAK.”
Unlikely. Fannie and Freddie have never written mortgages, subprime or otherwise. They are strictly a secondary market operator.
Forgot!!!
Definition: The secondary mortgage market allows banks to sell mortgages, giving them new funds to offer more mortgages to new borrowers. If banks had to keep these mortgages the full 15 or 30 years, they would soon use up all their funds, and potential homebuyers would have a more difficult time to find mortgage lenders.
Many of the mortgages on the secondary market are bought by Fannie Mae. Other are packaged into mortgage-backed securities, and sold to investors.
Thus you have derivatives!!!
What an ignorance of well over a thousand years business, banking and insurance history and law!
Of course secondary "insurance" -- or speculation/gambling -- contracts can be outlawed. They were for generations.
It is a perfectly legitimate business of government to specify what type of contracts are legal.
Wait, I thought that “naked swaps” was something that married swingers did in Marin County, CA?!
What are you freaking talking about? Which Gramm attached what?
Sorry you have a reading problem, the topic is credit defalt swaps. http://static.uspirg.org/consumer/archives/2008/10/60_minutes_on_c.html
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