TITLE

Regulating complex derivatives: Can the opaque be made transparent?

AUTHOR(S)
Dempster, Michael A. H.; Medova, Elena A.; Roberts, Julian
PUB. DATE
September 2011
SOURCE
Journal of Banking Regulation;Sep2011, Vol. 12 Issue 4, p308
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article discusses the general legal principles governing the relationships between banks issuing over-the-counter structured derivatives to non-bank clients. After a discussion of the evident informational asymmetries between the counterparties to such deals, a representative sample is presented of recent deals failed from the clent's viewpoint, all the subject of current negotiation or ligitation with banks in Germany. Mathematical (mis)pricing and (asymmetric) counterparty risk asessments for these examples are summarised graphically before discussing the legal implications of their egregious features and their possible mitigation in future deals by appropriate regulation and interpretation in the world's courts.
ACCESSION #
64313680

 

Related Articles

  • Madness to their method. Goddard, Ben // Hill;10/2/2008, Vol. 15 Issue 115, p17 

    The author reflects on the activities of U.S. President George W. Bush administration in addressing issues related to the continued meltdown of the U.S. economy.

  • The Social Sphere Under Conditions of Financial Crisis. Dmitriev, V. // Problems of Economic Transition;Oct99, Vol. 42 Issue 6, p6 

    Discusses the socio-economic policy taken by the Russian government during the global financial crisis in 1998. Overview of the social expenditures of the federal budget; Function of state financing for health; Impact of the payment system to poor families.

  • Rainy day blues forecast.  // State Government News;May99, Vol. 42 Issue 4, p7 

    Reveals that 40 states in the United States are not prepared for economic decline. Numbers of states that have funds to supplement during financial crisis; Data from the Center on Budget Policy Priorities, a research group based in Washington, D.C.

  • Unionists visit revolutions. Fuentes, Fred // Green Left Weekly;4/29/2009, Issue 792, p4 

    The article reports on a 10 percent increase in the minimum wage implemented by the government of Venezuela as a part of its anti-crisis measures which officially took effect on May 1, 2009.

  • Class solutions, not national solutions, to the economic crisis. Fredman, Nick // Green Left Weekly;3/25/2009, Issue 788, p7 

    The article focuses on several economic nationalist measures in Australia aimed at providing solutions to the problem caused by the economic crisis which include business subsidies, tariffs, and immigration policies.

  • 'Utmost good faith' only a start for cedents, reinsurers. Ceniceros, Roberto // Business Insurance;06/21/99, Vol. 33 Issue 25, p16F 

    Focuses on various ways to prevent the conflicts between ceding companies and reinsurers. Misunderstandings created by the principle of `utmost good faith'; Use of audits to uncover misunderstandings between the two sectors; Need for the reinsurer to establish a pattern of close communications.

  • Legal digest.  // Consumer Policy Review;Jul/Aug99, Vol. 9 Issue 4, p160 

    Presents an overview of several court cases related to consumer issues in Great Britain. Definition of good faith in the Hire Purchase Act of 1964; Right of litigant to choose own lawyer under Civil Procedure Rules.

  • Liar liar. Hart, Alison // Lawyer;9/22/2003, Vol. 17 Issue 37, p25 

    Focuses on the diminishing duty of good faith in the British insurance market. Landmark cases that have influenced the element of faith in insurance contracts; Rules governing insurance in the country; Estimated cost of insurance fraud on the industry.

  • Taking a Look at the New GFE Form. McDermott, John // Origination News;Dec2008, Vol. 18 Issue 3, p6 

    The article presents the author's perspective concerning the new Good Faith Estimate (GFE) disclosure sheet in the U.S.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics